Extended Essays 2021

Finally, since the epidemic in the U.S. is not entirely over at this stage, the whole process of

GDP recovery and the final economic performance cannot be seen. While there is no

complete information and data to consult and evaluate, it is not comprehensive enough to

evaluate whether the monetary policy is overused.

5.0 Conclusion

The research question “ To what extent has the monetary policy been overused in the USA

during the Covid- 19 pandemic?” can be answered by comparing the 2008 economic crisis

response policy and economic performance through the change of inflation rate, GDP

recovery, and the unemployment rate.

Therefore, in conclusion, the monetary policy introduced by the U.S. Federal reserve is

slightly much more overused than the monetary policies used in 2008. In 2021, the current

inflation rate reached 5.0 in May, which is much higher than the inflation rate in the 2008

economic crisis, maintained at 3.8 in 2008 and -0.4 in 2009 on average. Therefore, the

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