The Pros And Cons Of Fed's Monetary Policies

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In the time leading up to and throughout the Great Depression the Federal Reserve struggled to enact monetary policy to ease the turmoil in the economy. Due to a lack of technology, there was a delay between events in the economy and when the Fed received information on the event (Richardson). Additionally, the Fed was decentralized resulting in contradicting policies between districts. Disagreements amongst the governors on which institutions the fed should protect during bank runs caused hundreds of banks to fail (Richardson). Furthermore, the United State was one of the world’s largest economies on the gold standard, and thus the fed’s monetary policies were forced upon other countries using this standard leading to a global economic crisis (Bernanke). …show more content…

This paper will discuss the implications of the Fed’s monetary policy on the globe because of the gold standard, the problems caused by a decentralized Fed, and the Fed’s failure of a lender of last

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