When the economy began a downturn in 2007, and worsened when…
When the economy began a downturn in 2007, and worsened when the global financial system came to the brink of collapse in 2008, the Federal Reserve took a number of strong actions to ease a credit crunch and boost the economy. Among these were a lowering of interest rates, a loosening of restraints on lending, and the buying of asset purchases to support American banks and liquidity. In 2020 and 2021 the Fed took similar measures in response to economic shocks linked to the COVID-19 pandemic. In so doing, the Fed was engaging in __________, a specific type of economic policy.
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