Question

During the financial crisis and severe recession, the fed was credited with ______.

Answer 1

If there is a recession and financial crisis, the Federal Reserve will implement an expansionary monetary policy, sometimes referred to as a "loose monetary policy."

What is the meaning of monetary policy?

The macroeconomic strategy that the central bank has set is known as monetary policy. In order to accomplish macroeconomic goals like inflation, consumption, growth, and liquidity, a country's government uses a demand-side economic policy that entails managing the money supply and interest rate.

What is the loose monetary policy in economics?

Expansionist monetary policy, also referred to as loose monetary policy, broadens the availability of credit and money to foster economic expansion. When the economy is struggling, a central bank may implement an expansionist monetary policy to lower unemployment and stimulate growth.

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