Identify an action by either the Federal Reserve, US Treasury, or other central bank / government, in response to an economic event such as the COVID 19 pandemic, heightened inflation concerns, the failure of Silicon Valley Bank, the failure of FTX, or another of your choosing.
Explain what the institution is doing and what they are trying to achieve by their actions. Be specific, if there is data that you can point to, do so. The institution will likely have shared their thought process with the market, which is a good place to start.
Provide a critique for the action, explain whether in your opinion their action had the desired effect and if there were any unintended consequences that were problematic. Again, there may be data that we have looked at during our time together that you use to support your case. The financial media might have articulated some critiques that might be a good starting point.
Finally, what would you have done differently if you were in charge of solving the problem that the institution was faced with. If your approach is different, why is it different? Why do you think the Fed did not pursue the path that you proposed? If you approach is not different, what gives you pause to this particular path and what other actions might have been available.
Please approach this like you were writing a two-page case study. Tell me an economics story and feel free to add any charts that support your thoughts (and highlights your understanding). Any charts that you add be sure to include axes labels, you do not necessarily need to put numbers on your axes, the curves should tell your story.
Remember this is an economics class; your thoughts should be supported by some of the economics that we have encountered during the semester (in particular the final parts of our class). Having an option is great but support that opinion with economics.
