Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 3rd International Conference on Business and Policy Studies
Series Vol. 75 , 17 April 2024
Open
Access | Article
The Role of Monetary Policy in Global Financial Crisis
* Author to whom correspondence should be addressed.
Abstract
The author of this article conduct an in-depth analysis of several major economic crises from the beginning of 1929 to the present and how the Federal Reserve used monetary policy and discourse to regulate the market during these crises. And how these policies affect the market, and how this makes the U.S. economy prosper. The article will first review the Great Depression of 1929 and explore how the U.S. economy evolved into a financial crisis that year, why the banking industry went bankrupt on a large scale, how these events affected people's lives and the Federal Reserve's response strategy. The author will then analyze the inflation rate, unemployment rate, and spiral inflation during the stagflation period from the 1970s to the 1980s, as well as the Federal Reserve's response measures. The article will also explore the impact of the 2008 financial crisis on financial markets, the real estate market, and ordinary people's lives, as well as the Federal Reserve's response. Finally, the article focuses on the COVID-19 crisis and the rise in inflation it has caused, assessing its impact on the U.S. economy, financial markets, and the Federal Reserve's policy measures. By analyzing these historical events, this article will explore the role of monetary policy, as well as the challenges and strategies of policymakers, providing perspectives for understanding history and predicting future economic challenges.
Keywords
Monetary Policy, Financial Crisis, Central Bank
References
1. Bernstein, M. A. (1989). The Great Depression: Delayed Recovery and Economic Change in America, 1929-1939. Southern Economic Journal, 55(4), 1058.
2. Federal Reserve Economic Data (2023). St. Louis Fed. https://fred.stlouisfed.org/
3. Wheelock, D. C. (1992). Monetary policy in the Great Depression: What the Fed did, and why. Review, 74(2), 3-28.
4. Bluedorn, J., Hansen, N., Álvarez, J. S., Pugacheva, E., Sollaci, A., & Huang, Y. (2022). Wage-Price Spirals: What is the Historical Evidence? IMF Working Paper, 2022(221), 1.
5. Blinder, A. S. (1979). Economic policy and the Great stagflation. In Elsevier eBooks.
6. Silber, W. L. (2013). Volcker: the triumph of persistence. Choice Reviews Online, 50(06), 50–3384.
7. Christiano, L. J., & Kehoe, P. J. (2008). Facts and Myths about the Financial Crisis of 2008. Federal Reserve Bank of Minneapolis Working Paper 666 (2008).
8. Mrkaić, M., Nabar, M., & Chen, W. (2019). The global economic recovery 10 years after the 2008 financial crisis. IMF Working Paper, 2019(083), 1.
9. Armantier, O., Koşar, G., Pomerantz, R., Skandalis, D., Smith, K., Topa, G., & Van Der Klaauw, W. (2021). How economic crises affect inflation beliefs: Evidence from the Covid-19 pandemic. Journal of Economic Behavior and Organization, 189, 443–469.
10. Rosana, G., Abraham, H. & Vetotama, G. (2022). The Effect of The Fed’s Interest Rate Hike as The Implementation of Tight Money Policy in The Capital Market. University of Indonesia.
11. Further thoughts on sea change. (2023). https://www.oaktreecapital.com/insights/memo/further-thoughts-on-sea-change.
Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open Access Instruction).
- Volume Title
- Proceedings of the 3rd International Conference on Business and Policy Studies
- ISBN (Print)
- 978-1-83558-373-9
- ISBN (Online)
- 978-1-83558-374-6
- Published Date
- 17 April 2024
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/75/20241611
- Copyright
- 17 April 2024
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited