Part 1

Appraise how the statement reflects the FOMC’s views on the economy and provides a justification for its monetary policy decisions. Minimum of 200 words and one source.

Part 2

Opponents of quantitative easing see it as a new approach to monetary policy that risks significantly increasing inflation without effectively stimulating economic growth. Some of these opponents see the policy as monetizing the national debt. Supporters of quantitative easing argue that it is an extension of the traditional use of open market operations that the Fed routinely uses to stimulate the economy when it is perceived to be too weak. Select one of the quantitative easing arguments and support your position using specific examples. 

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