Current Event on Federal Reserve, Monetary Policy, Banking Policy, or Regulation

Question

Current Event on Federal Reserve, Monetary Policy, Banking Policy, or Regulation

Introduction- Introduce the article name and economic topic. (2–4 sentences)

Summary of Article- Summarize the article. Include APA in text citations. (2 paragraphs)

Discussion- What do you think? Give your opinion about how you believe this topic will affect you or the economy. (2 paragraphs)

Graphical Analysis- Must include an approved economic model having the correct labels. When applicable, the model must show the change implied by the article summary. (Note: trend lines or graphs from the internet will not meet the requirement for this part of the paper) Give a clear concise and accurate description of the change that occurs on the model. Discuss the concepts that define the model if a change is not applicable.

Consequences- Discuss the consequences that might occur that are in opposition to the authors ideas or to your interpretation. What factors might cause a different outcome? Are there groups of people who might be hurt or helped not indicated in your previous discussion? (1 paragraph)

UPDATE- I didnt select an article, you can choose your own or this one below:

https://www.nytimes.com/2018/06/15/business/dealbook/fed-interest-rates.html?rref=collection%2Ftimestopic%2FFederal%20Reserve%20System

Explanation / Answer

Monetary policy

Monetary policy is the process by which the monetary authority of a country typically the central bank or currency board, controls either the cost of very short term borrowing or the monetary base often targeting an inflation rate or interrest rate to ensure prce stablity and general trust in the currency. Goals of monetary policy are usually to contribute to the stabilty of gross domestic product, to achieve and maintain low unemployment, and to maintain predictable exchange rates with other currencies.

monetary economics provides insight into how to craft an optimal monetary policy. In developed countries, monetary policy has generally been formed separately from fiscal policy, which refers to taxation, government spending and associated borrowing.

Monetary policy is referred to as being either expansionary or contractionary.

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