1a) Does Winston Churchill\'s perception of Americans, who \"could always be cou
ID: 1102356 • Letter: 1
Question
1a) Does Winston Churchill's perception of Americans, who "could always be counted on to do the right thing-after they have exhausted all other possibilities apply to the decision-making of the Fed during the 1930s? Your answer must include at least 3 mistakes the FED is considered to have made during this time. Specifically address the role the Gold Standard played as a constraint on the FED's decision-making. Also include a discussion of the question concerning why the FED ignored the banking crisis for so long? What role did nominal versus real interest rates play in their decision regarding interest rates? Finally, what is the most striking aspect of this period ? 15 points.Explanation / Answer
FED- means federal reserve system. this is bassically a system started by some international corrupt bankers. it is a privately owned monopoly who is maily responsible for creating america's national debt. the mistakes are;-
1930 the fed raised rates from 6% to 2.5% ( discount rates).
this process led to disruption in credit creation and preventing some firms from acquiring credits at thir own price.
this decision also led to deflation. deflation forced bankers firms debtors turned in to bankruptcy.
THE GOLD STANDARD transmitted deflation to other nations. the deflation ended up with THE BANK HOLIDAY OF 1933. these programs suspended gold standard deflation, for this purpose gold reserve act was formed in 1934, roosevolt's gold programs. these all programs were initiated by roosevolts administration recovery programs.
NOMINAL INTEREST RATE - INFLATION = REAL INTEREST RATES.
the main advantage of knowing difference between real and nominal rates of interest is that it allows consumers about better decision making for loans and their investments.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.