Extended Essays 2021

various securities assets. As a result, by providing cash to the money market, the Federal

Reserve has essentially provided unlimited capital, significantly expanding the scope of its

repurchase business.

Therefore, I raise a question: Is the series of monetary policies adopted by the U.S. Federal

Government to respond to the economic crisis caused by the Covid-19 pandemic the most

appropriate way? Since the inflation rate in the United States has continued to rise despite the

slowdown and withdrawal of the monetary policies in April and May. Moreover, many

American residents are concerned about the current economic situation. Thus, this essay

provides an excellent opportunity to explore whether the U.S. Federal monetary policy used

for the Covid-19 pandemic is overused.

However, as the epidemic continues now, the monetary policy of the U.S. federal government

in response to the economic crisis has not been completely withdrawn. Therefore, the current

situation alone cannot determine whether the monetary policy has been overused. Therefore,

I propose whether the monetary policy adopted in 2020 can be compared with that in the

2008 economic crisis and the subsequent economic performance to obtain a control group to

evaluate whether the policy is overused.

In addition, although the causes of the economic crisis in 2008 and now are entirely different,

there is not only a typical economic crisis in 2008 in history. However, many of the monetary

policies adopted in 2008 are similar to the options of the United States federal government

today, except that the strength and time are not the same. Moreover, 2008 is the latest large-

scale economic crisis in the United States history; compared with the economic crisis in the

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