Macroeconomic Case Studies

Economics 001A: Macroeconomics Macroeconomic Case Studies Stephen Rossi Economics 001A: M 6:30-9:15 Slowing the US Economy The article titled 'Fed Unlikely to Alter Course' by John M. Berry of the Washington Post takes an interesting look at actions that Alan Greenspan his colleges of the Federal Reserve have been taking over the last 9 months to slow the economic growth of United States. The astonishing growth rate of 7.3% is fueled by an economy that is in …

…and value of money because of inflation. When there is an unexpected increase in this rate, the results trickle down to many outlets of the economy such as the stock and bond markets, which can be clearly seen by the sudden stock market fluctuation. In the last year the Federal Reserve began to regulate the economy by increasing interest rates because of the fear of rising inflation. Time will tell the effectiveness of these measures.