How Does Monetary Policy Actually Work?
Bearish investors have long predicted that the Fed’s bond buying would spur inflation and devalue the dollar. But since the 2008 financial crisis, neither prediction has come true. What gives?
This seminar explores the nuts and bolts of monetary operations, and the extent to which how the Federal Reserve’s policies do (and do not) impact inflation, the economy, and the U.S. fiscal deficit. Questions to be addressed include:
- How does Quantitative Easing (QE) work?
- Should the Federal Reserve raise interest rates?
- How do the Federal Reserve’s policies affect the conduct of fiscal policy?