Extended Essays 2021

twentieth century, there may be data and information loss, which cannot provide

comprehensive data for comparative analysis.

Therefore, through the comparison of the monetary policy adopted by the Federal Reserve

after the 2008 financial crisis and the coronavirus epidemic crisis, it can be found that the

time from formulation to implementation of the policy during the coronavirus epidemic

period is significantly shortened, the policy strength and tool diversity are significantly higher

than the financial crisis period. In just three months, the scale of the Fed ’ s asset purchases

was close to the full scale of 4 rounds of quantitative easing after the financial crisis. The

current sharp inflation and slow employment growth (Patton, 2020) reflect the side effects of

the short-term and strength expansionary monetary policy.

Hence, to demonstrate “to what extent” how the monetary policy has been overused, this

assignment will develop with a comparison of the 2008 economic crisis response monetary

policy and economic performance. Therefore, leads to the question that “ To what extent has

the monetary policy been overused in the USA during the Covid-19 pandemic? ”

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