POLI 445 Lecture Notes - Lecture 20: Crawling Peg, World Trade Organization, Currency War

16 views5 pages

Document Summary

Just as the crisis became clear and broke (august/september) the usd"s value spikes. After it becomes clear this is an international crisis, money is initially fleeing other places and enters the us. This is followed by a longer-term drop due to the monetary policies of the us domestic monetary authorities. Tarp (troubled asset relief program) passed by the bush administration in 2008 right before the election. There will be money available to buy the assets that the financial actors can"t sell (like mbs) Chunk of money put aside to help financial actors. Obama administration comes in and wants to use fiscal stimuli, easy money i. e. government spending as a way to stimulate the economy, as by 2009 the economy has slowed way down. People don"t want to spend, and when they have additional money it goes towards debts. Federal reserve is lowering interest rates to stimulate the economy.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents