Using your economic knowledge, compose a mock interview between yourself and a member of the federal reserve’s board of governors about the economic actions the fed has taken since 2008. be sure to script both your questions and the board members’ realistic responses, and address the topics of expansionary policy and future inflation rates.

It was implemented by Treasury Secretary Henry Paulson. It consisted on a bailout to ensure the viability of the US financial system after the subprime mortgage crisis because massive defautls had already triggered the collapse of the investment bank Lehman Brothers. $700 billion were directed to purchase mortgage-based securities and other potentially dangerous assets, injecting liquidity to banks.

Authorities are undertaking an interventionist stance in order to reverse the  critical economic situation. Recession was faced by pumping public money into the system hence, by increasing public spending, aiming that it would subsequently lead to demand increases. Such solutions are therefore based on Keynesian economics, as it was the New Deal implemented by President Roosevelt in the 1930s.

It is one of the actions that have been performed by the Fed since 2008. It is an expansionary monetary policty that consists on large asset purchases  that would decrease interest rates and, in turn, boost public and private investments, consumption and, in general, the whole aggregate demand.

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