Discussion 7

Last week we explored deflation, which was one of the risks that arose from the Great Recession. This week, we want to focus more directly on the macroeconomic policy responses to the Great Recession. Chapter 15 provides a useful and detailed starting point for the discussion.


Because there are many aspects to the macroeconomic response, both in the US and in Europe, build from the information in Chapter 15 and select one or more aspects of the policy responses to explore in more detail. Monetary policy, as well as fiscal policy, responses are appropriate for examination. 


Use this as an opportunity to examine an aspect of the US response or the UK’s or European Central Bank’s response to this challenge that is of particular interest to you.

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