Analysis of Monetary Policy in the United States since the Great Recession

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Authors

Beattie, Ethan

Issue Date

2016

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Thesis

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en_US

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Abstract

As of late, there have been questions of the effectiveness of macroeconomic theories in modeling today's global economy. This paper examines Keynes' Quantity Theory of Money, as well as Fisher's Fisher Equation, and their accuracy since the 2008 financial crisis. These theories outline the relationship between money supply and price levels in a given economy. Since 2008, the United States money supply has increased significantly yet price level has not followed in the manner set out by these theories. Examples are provided of other nations that followed similar economic recovery policies to those of the U.S., with varying results. Lastly, this paper provides a linear regression analysis of the validity of these theories drawn out by Keynes and Fisher and determines the effectiveness in modeling the United States economy

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iv, 20 p.

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U.S. copyright laws protect this material. Commercial use or distribution of this material is not permitted without prior written permission of the copyright holder.

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