Write an 8â€“10 page paper in which you evaluate the role and effectiveness of the Federal Reserve in stabilizing the economy since the 2007â€“2009 recession and its continued impact on the current state of the economy. In your paper:
- Describe the ways in which the Federal Reserve adjusted money policy tools in response to the financial crisis of 2007â€“2009; assess the success or effectiveness of those adjustments.
- Assess to what extent the financial crisis of 2007â€“2009 compromised the independence of the Federal Reserve.
- Analyze the strengths and weaknesses of using monetary policy versus fiscal policy when promoting economic activity and preserving price stability.
- Describe one anticipated result or economic consequence of the Fed’s actions and the extent to which it actually occurred.
- Describe one unintended consequence (such as economic, social, or political) of the Federal Reserveâ€™s actions.
- Use data from the Fed publications and other sources to support all of your positions. Cite at least four academic quality references.