PART I: ESSAY Directions: Please write a 1000-1500 word paper in which
you address the questions below. Please format your paper according to APA
guidelines (including a title page).
Make sure to cite your references in a
reference section. Please visit the Academic Resource Center for guidelines on
using LIRN and APA format.
As part of its monetary policy to stimulate economic
growth in the post-recession years of 2010-2011, the Fed engaged in a series of
Quantitative Easing operations. Explain what Quantitative Easing means and how
it is different from the other monetary policy tools. Why did the Fed have to
resort to this tool, instead of one of its other tools? What are the potential
long-term effects of Quantitative Easing on Inflation?