Question: The Federal Reserve under Chairman Bernanke was very aggressive in trying to cope with or manage the financial crisis that hit the U.S. in 2007 and 2008.
Q1. Why do you think the Federal Reserve acted so aggressively?
Q2. What traditional monetary policies (three standard Fed policies) were enacted by the Fed and what did those policies attempt to do?
Can you think of any new policies that were enacted by the Fed to manage the crisis? Briefly discuss one of these policies and its objective.