Business Cycles and Concepts - monetary exchange in a financial crisis
The United States Federal Reserve bank has the authority to lower or raise rates as they choose. Lowering and raising rates do affect the supply and demand of the country. With this the economy is affected in a number of ways, Some of the ways the economy is effected are employment opportunities, or lack employment opportunities, doing international business, and interest rates. When The Federal Reserve bank sets out to control interest rates they use their own money in to do soOnce the economy was hit the government had to move fast. The Federal Reserve began making major changes. The changes began by giving banks more security by buying larger amounts of assets to jump start the economy. With this move banks had a better chance for recovery. When the banks are able to survive, the economy can improve.
The Federal Reserve has put billions of dollars into the economy. The Bank of China and also the European Central Bank invested have also invested millions of dollars. According to the White House back in 2008 and 2009, the average growth rate of GDP was -6.2% during the fourth quarter of 2008 and -7.5% during the first quarter of 2009. Watching this closely we’re able to see just how involved the government is when it comes to the economy. The United States is more involved than other governments. Whatever the involvement of each government, each was able to do what was needed.
I do agree with what was done. Sometimes things must be changed rapidly in order to start a process for change. The cuts were necessary in order to get the economy back on track. Not everyone will like how a process is done, but then again you can’t please everyone at all times