Do the fiscal and monetary policies undertaken at the beginning of the pandemic outbreak to deal with the effects of COVID-19 on the economy lend support to modern monetary theory? Why or why not?
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- What specific tools did the Germany government use to conduct the monetary policy during the time of Global Financial crisis? What was the stance the Germnay government adopted? Based on data/statistics/evidence/references, was the government successful in containing the crisis? Why or why not? Provide clear explanations. You may use the money market to complement your AD/AS analysis to demonstrate the impacts of the applied monetary policy.How should the central bank use the reserve requirement to overcome the challenges from Covid-19 pandemic?In recent years, the US and few developed countries have interest rates falling to very low levels. Does this situation was affected by the COVID-19 pandemic? Explain this situation according to Keynesian theory and explain the policies used by the Government and Central banks.
- If the COVID-19 recovery continues and inflation starts to rise, what effect would a decision by the Fed to not change the federal funds rate target range have on the U.S. economy? If the Fed decides to leave the federal funds rate target range unchanged, we would expect _______. A. deflation to occur and the unemployment rate to increase B. the recessionary gap to increase C. potential GDP to increase and the full-employment quantity of labor to increase D. inflation to increase and the unemployment rate to decrease Thanks!Why did the government use expansionary monetary policies in the late 1970s, and what was the principal negative macroeconomic effect of these policies? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Ordinarily the Bank of Canada would like to push interest rates lower during a recession, such as the one cause by the COVID-19 pandemic. Which of the following chartered bank actions does NOT create money through multiple-deposit expansion? Multiple Choice... (a) Paying back a loan from the central bank (b) Selling additional stock shares in the bank. (c) Buying government bonds from a securities dealer (d) A decrease in the desired reserve ratio (e) Low unemployment
- The demand for money has fallen during the Covid-19 pandemic TRUE / FALSE During times of economic uncertainty people hoard cash. TRUE / FALSEDiscuss the main unconventional monetary policy tools. Give examples of central bank policies from around the world for each of your arguments. Discuss what will happen to the value of the pound in the short run and in the long run if the Bank of England lowers interest rates to reduce unemployment Discuss the effects that COVID-19 may have had on the money multiplier. Give at least two examples of central bank policies around the world undertaken to mitigate such effects (give references to the appropriate media sources for your examples)discuss the scope of monetary economics and its importance to the feild of economics
- Which monetary policy tool can the Federal Reserve use to conduct an expansionary monetary policy (please state at least one instrument)? Which monetary policy instrument can the Fed use to conduct a restrictive monetary policy? Assume the country is experiencing high unemployment and a recession, such as during 2001, 2008-2009, and 2020. What is the Fed likely to do in this scenario? Discuss the effects of such policy on the economy. Can you give a specific example to what the Fed did during any of those recessions?A Well-known economic model called the Philips Curve (discussed in the The Keynesian Perspective) describes the short run tradeoff typically observed between inflation and the unemployment. Based on expansionary and contractionary monetary policy, explain why one of these variable usually falls when the other risesThe following was released by the Bank of England reflecting on monetary policy on 17th of Sept 2020 The Bank of England’s Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. In that context, its challenge at present is to respond to the economic and financial impact of the Covid-19 pandemic. At its meeting ending on 16 September 2020, the MPC voted unanimously to maintain Bank Rate at 0.1%. The Committee voted unanimously for the Bank of England to continue with its existing programmes of UK government bond and sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves, maintaining the target for the total stock of these purchases at £745 billion. The outlook for the economy remains unusually uncertain. The MPC’s central projections in the August Monetary Policy Report assumed that the direct impact of Covid-19 on the economy would…