You will conduct research into how monetary policy was used during the following three times periods in the history of the United States:
The Great Depression years of 1929-1933
The 1970’s Stagflation from 1973-1982
The recent recession that occured in the years 2008-2010
In your first page after a brief introduction, you should deine several key concepts that will be the subject of your research in this page:
-Fractional Reserve Banking System
-The Money Multiplier
-Money Supply; M1;M2
The body of your paper should focus on each of the three events one at a time and identify the monetary policy that was implemented during each of the events. Keep
inmind that when covering a period of years you may not observe use of the three monetary policy tools each year, however looking across the period of years you will
see clear changes in the money supply that will demonstrate expansionary or contractionary direction taken by the Federal Reserve during each event.
You should use your research to go beyond a simple statement of “the money supply increased” or there was less money in the economy” and discuss how the money supply
What policy tools tools were used? How did the money supply change? Did the economy expand or contract as a result?
-Then at the end provide a brief summary of how monetary policy was used during each event and discuss the impact our macroeconomic variables (GDP; Unemployment;
Chnages in ther price level, either inflation or deflation) from the beginning to the end of each time period.