Module 10 DB: Why is the composition of the Fed’s balance sheet a potentially important aspect of monetary policy during a crisis?

Must be under 180 words.

Module 10 Essay: Alan Greenspan has stated that central banks should not take actions to burst bubbles.   According to Greenspan, price bubbles are nearly impossible to identify. What is the difference between a price bubbles and a credit bubbles

Your grade will be determined as follows (5 points):

· Your essay addresses the question and demonstrates logical thinking.  Your viewpoint is clearly explained (2 points).

· Your essay does not exceed 200 words and the number of words used is clearly indicated at the end of your post (1 point).

· Your essay uses correct spelling, punctuation, and grammar (1 point).

· You are adding references at the end of your post using APA style.  If you are referring to a book provide the author’s name, the book title, the edition number and date and the chapter you are referring to.  If you are referring to an online article provide the link.  If you are using your own experience add: “Experience” at the end of the paragraph (1 point).

 

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