Posted: February 9th, 2015

Monetary Policy

Paper, Order, or Assignment Requirements

Topic :Monetary Policy

Drawing on readings, theory, you will:

• In an account that is detailed but accessible to a non-expert, lay out the arguments that monetary stimulus – and Quantitative Easing in particular – is an appropriate and effective response to a deep recession
  1. What is the theoretical basis for this argument?
  2. What data/evidence/real-world experiences support this argument?
  3. As always, cite readings, textbook, lecture, or data.
• Detail arguments that monetary stimulus/QE is ineffective or even counter-productive in addressing a deep recession
  1. What is the theoretical basis for this argument? How does this theory differ from the theory supporting stimulus?
  2. What data/evidence/real-world experiences support this argument?
  3. As always, cite readings, textbook, lecture, or data.
• Take a stand – is large fiscal stimulus an appropriate and effective way to address a deep recession, or is in ineffective and even harmful?   Or, is there a way that the two views can be reconciled? Cite both theory and evidence to back up your argument.