"Assess the role of central banks in managing economic recessions. Discuss how monetary policy tools such as interest rate adjustments, quantitative easing, and open market operations are used to stimulate economic activity and stabilize financial markets. Additionally, analyze the limitations and potential risks of these monetary policy measures in the context of zero-lower-bound interest rates and high public debt."

MACROECONOMICS
14th Edition
ISBN:9781337794985
Author:Baumol
Publisher:Baumol
Chapter13: Monetary Policy: Conventional And Unconventional
Section: Chapter Questions
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"Assess the role of central banks in
managing economic recessions. Discuss
how monetary policy tools such as interest
rate adjustments, quantitative easing, and
open market operations are used to
stimulate economic activity and stabilize
financial markets. Additionally, analyze the
limitations and potential risks of these
monetary policy measures in the context of
zero-lower-bound interest rates and high
public debt."
Transcribed Image Text:"Assess the role of central banks in managing economic recessions. Discuss how monetary policy tools such as interest rate adjustments, quantitative easing, and open market operations are used to stimulate economic activity and stabilize financial markets. Additionally, analyze the limitations and potential risks of these monetary policy measures in the context of zero-lower-bound interest rates and high public debt."
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