Module 9 The Federal Reserve
ECONversation
The four monetary policy tools enacted by the Federal Reserve include the Discount Rate, the Federal Reserve Requirement Ratio, Open Market Operation, and Interest on Reserves. The monetary policy tool that is used more frequently is Open Market Operation because this tool allows the Federal Reserve (Board of Governors) to pool together a large amount of money to inject into our domestic economy. Consider how the Federal Reserve has been able to keep the United States out of a recession in the aftermath of COVID-19. Looking through a historical lens, our U.S. economy has experienced 11 recessions since 1948; therefore, analyze how the Federal Reserve responded and which monetary policy tool was used.
For this module week’s ECONversation, respond to the following prompts.
· Throughout history, when was the Federal Reserve able to pull the United States out of a recession or prevent a recession from occurring, and how?
· How was the value of the United State’s currency determined? How does that compare to other countries?
· Which monetary policy tool was used?
· During the same period of time, what actions were taken by the federal government to safeguard domestic consumers and to promote the well-being of domestic consumers (households)?
Support your post by incorporating concepts from this module week’s readings as well as any additional literature or personal experience. All references should be documented using the current APA style.
Post your initial post
by the fourth day of the module week. Return
by the sixth day of the module week to review your classmates’ posts. Reply to
at least two of your classmates.
