Instructions- Read the following article."The Federal Reserve is Changing What It Means to Be a...

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Instructions- Read the following article."The Federal Reserve is Changing What It Means to Be a Central Bank" by Nick Timiraos and Jon Hilsenrath, The Wall Street Journal, April 27, 2020.- Answer both of the questions listed below.- Include and cite additional resources.Discussion Questions:· What do you think about the Federal Reserve's decision to provide liquidity and a lending backstop to businesses, states, and cities?· What are some of the short-term and/or long-term effects of these policies?

Sumita Mitra · Accepted Answer

3
Federal Reserve’s Decision to provide liquidity:
We have seen over the last few months what this pandemic has done to the economy and to the lives of the people across the world. Lots of jobs, closures of organizations and businesses and work from home alternatives has not helped either due to a slump in the economy and the cash flow in the system. Three has been a liquidity crisis and which has triggered a deep economic downturn of uncertain duration. In this condition the federal reserve has come out with some action plan and policies to arrest the economic slide and help in lending the people, employers, financial markets, and state and local governments. The estimated liquidity punch in the system is around 2.3 trillion dollars. 
At one point this is needed to save the economy and the country from depression like situation and at the same time it is also critical to analyze the risk associated with the recovery of the debt after a due course of time.

Instructions - Read the following article. "The Federal Reserve is Changing What It Means to Be a Central Bank" by Nick Timiraos and Jon Hilsenrath, The Wall Street Journal, April 27, 2020. - Answer...

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