MACROECONOMICS

1186 WD

The Federal Reserve, U.S. central bank had make their decision to continue on with buying treasury and mortgage bonds with the new money through the policy of quantitative easing. They chose not to taper because the unemployment rate has reduced. Moreover, according to the federal census, the real household incomes in America did not fall any further. Hence, quantitative easing has been quite good for increasing employment and boosting the household wealth in US (The Economist, 2013).

Justification of Topic:

This topic is chosen because it shows how the US Central Bank deal with their recession by using quantitative easing, which is closely related to monetary policy and how it affects the aggregate demand and aggregate supply. By using