Monetary Policy: The Negative Real Shock Dilemma

Imagine a negative real shock, like an oil crisis, just hit the economy. How should the Fed respond? Decreasing the money supply will help with inflation, but make growth worse. Increasing the money supply will improve growth, but inflation will climb higher. What’s the Fed to do?! ------------------------------------------------------------------------------------------------------------------------------ Subscribe for new videos every Tuesday! http://bit.ly/1Rib5V8 Macroeconomics Course: http://bit.ly/2hZVx2G Ask a question about the video: http://bit.ly/2i0KDcU Next video: http://bit.ly/2uDomYF Help translate this video: https://amara.org/en/teams/mruniversity/
Date: 
2017-08-15 05:32:20
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