Monetary policy during a war

Reference no: EM131226049

Monetary Policy during a War :

Consider a discussion during FOMC meetings in which there is a weak economy and a war, with potential major damage to oil wells.

Explain why this possible effect would have received much attention at the FOMC meetings.

If this possibility was perceived to be highly likely at the time of the meetings, explain how it may have complicated the decision about monetary policy at that time.

Given the conditions stated in this question, would you suggest that the Fed use a restrictive monetary policy, or a stimulative monetary policy? Support your decision logically and acknowledge any adverse effects of your decision.

Reference no: EM131226049

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