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Federal reserve sequential targeting strategy

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Reference no: EM131368200

Some economists contend that the Federal Reserve's sequential targeting strategy for implementing monetary policy doesn't work; others contend that it is highly effective. what do you think? Discuss both 1) the strength and 2) the weaknesses of the Fed's sequential targeting strategy.

Technically, since 2011 the US economy has been in the "expansion" phase of the business cycle, but annual GDP growth has averaged well below the US 3-5% norm.

a) Why has the US economy been growing so slowly since 2011?

b) Is slow GDP growth the "new normal" or will US GDP growth return to its historic trend? Explain your answer.

Reference no: EM131368200

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