Monetary Policy
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Title: Monetary Policy

Essay Details:

Subject: Miscellaneous
Author: Norma M
Date: October 27, 2011
Level: University
Grade: A
Length: 2 / 509

Essay text:

First, in 1975, Arthur Burns wanted a strict money policy and did not want to open the gates. Then in 1979, Paul Volcker needed to turn around the worst recession since the Great Depression. Finally, in 1987, the stock market crashed, and the video showed how Alan Greenspan would respond to save the economy. When Arthur Burns took over as chairman of the Federal Reserve Board, inflation was a problem and car and home sales plunged as a result. The Feds were forced to keep a tight money policy, restraining borrowers and raising interest rates. This served as a restraining hand on the economy. But as a result of this restraining hand, unemployment rose to levels that were the worst since the Great Depression...

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