Extended Essays 2021

2.0 Methodology

I summarized the 2008 and 2020 through several financial websites, such as Bloomberg

News. As a result, the details and time of different classifications of monetary policies in

2008 and 2020 are collected, including but not limited to: reducing interest rates and

quantitative easing policies, reducing Reserve interest rates, directly issuing currency or

providing loans, and market repurchase.

In addition, to analyse the different economic performances in the two economic crises, the

official website of U.S. government statistics (https://www.bea.gov) and various statistic

website were used. The floating secondary data on the U.S. economic operation is collected,

including real GDP, inflation rate and unemployment rate from January 2020 to June 2021

and from 2007 to 2009 around the 2008 economic crisis. Hence, can directly compare and

analyse the economic performance under the response policy of the Federal Reserve to

evaluate whether the monetary policy used in 2020 is overused.

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