Assignment: The Federal Reserve

The Federal Reserve offers to the general public numerous publications available at the Website of the Federal Reserve Board at

The Federal Reserve Board testimonies, press releases, monetary policy reports, the Beige Book, and a variety of other publications offer a detailed assessment of current economic activity, financial markets, and the monetary policy tools used to promote economic activity and preserve price stability.

Write an eight to nine (8-9) page paper in which you:

1. Evaluate the role and the effectiveness of the Federal Reserve in stabilizing the current economy.

2. Determine which economic indicators the Federal Reserve should analyze so it can better stabilize this particular economy.

3. Describe which monetary policies the Federal Reserve might use to influence the money supply.

4. Explain the strengths and weaknesses of using monetary policy in comparison to fiscal policy when promoting economic activity and preserving price stability.

5. Analyze the effect of the Federal Reserve’s action you identified in #3 on the aggregate demand / supply model.

Your assignment must follow these formatting requirements:

• Be typed, double spaced, using Times New Roman font (size 12), citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

The specific course learning outcomes associated with this assignment are:

• Analyze the basic operation of banks, the structure of the banking industry, and the major regulatory processes controlling banks.

• Evaluate monetary policy and its impact on economic growth and business cycle.

• Analyze the various theoretical approaches and models and assess their use in shaping monetary policy.

• Use technology and information resources to research issues in money and banking.

• Write clearly and concisely about money and banking using proper writing mechanics.