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ERIC Number: EJ927064
Record Type: Journal
Publication Date: 2011
Pages: 4
Abstractor: ERIC
Reference Count: 0
ISBN: N/A
ISSN: ISSN-0037-7724
Quantitative Easing and the Fed: Ghost Story II
Niederjohn, M. Scott; Schug, Mark C.; Wood, William C.
Social Education, v75 n2 p98-101 Mar-Apr 2011
The U.S. economy today has been in recovery since 2009. But nearly everyone agrees that the recovery is anemic--too slow to reduce the high level of unemployment. Real Gross Domestic Product (GDP)--the total value of all the goods and services produced in the United States--increased at an annual rate of 2.8 percent in the fourth quarter of 2010. Economists express concern that this level of economic growth is insufficient to create the number of new jobs required to reduce the unemployment rate. The person with the most influence over the economic recovery is arguably not President Obama, or any leader in Congress; rather, the chair of the Federal Reserve System's Board of Governors, Ben S. Bernanke, likely holds this distinction. Bernanke, as the most influential voice in the setting of the nation's monetary policy, had a great deal of authority and responsibility as the economy slowly recovered. What should Bernanke and the Fed do now? After thoughtful study and debate within the Fed, Bernanke has launched a new program known as Quantitative Easing or QE, in two rounds. The latest round of QE, known as QEII, calls for the Fed to purchase about $600 billion of additional U.S. government securities from U.S. banks over several months. In this article, the authors imagine what two renowned economists, John Maynard Keynes and Milton Friedman, might say to Ben Bernanke about how to advance economic recovery. (Contains 2 figures and 3 notes.)
National Council for the Social Studies. 8555 Sixteenth Street #500, Silver Spring, MD 20910. Tel: 800-683-0812; Tel: 301-588-1800; Fax: 301-588-2049; e-mail: membership@ncss.org; Web site: http://www.socialstudies.org
Publication Type: Journal Articles; Reports - Descriptive
Education Level: Elementary Secondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A