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Federal Government Fiscal Stimulus packages and Federal Reserve policies to cont

ID: 1176807 • Letter: F

Question

Federal Government Fiscal Stimulus packages and Federal Reserve policies to control liquidity and counter the credit crisis. What has the Federal Government and the Federal Reserve been doing? Why? What policy tools have they been using?

Inflation has traditionally been a concern of the Federal Reserve. Recently, there has been the possibility of deflation. Should the Fed be concerned with deflation of prices?

When inflation occurs some economic agents gain and some lose.  Who would gain and lose if deflation occurs? Why? What will happen to interest rates and investment according to Keynesian and Classical/ Monetarist theories?

Explanation / Answer

http://www.answers.com/topic/inflation