The Federal Reserve Board testimonies, press releases, monetary policy reports, the Beige Book, and a variety of other publications offer a detailed assessment of current economic activity, financial markets, and the monetary policy tools used to promote economic activity and preserve price stability.

Write an eight to ten (8-10) page paper in which you: (very important to be thorough)
1. Thouroughly evaluate the role and the effectiveness of the Federal Reserve in stabilizing the current economy.
2. Thoroughly determine which economic indicators the Federal Reserve should analyze so it can better stabilize this particular economy.
3. Thoroughly describe which monetary policies the Federal Reserve might use to influence the money supply.
4. Thoroughly explain the strengths and weaknesses of using monetary policy in comparison to fiscal policy when promoting economic activity and preserving price stability.
5. Thoroughly analyze the effect of the Federal Reserve’s action you identified in #3 on the aggregate demand / supply model.

The specific course learning outcomes associated with this assignment are:

• Analyze the basic operation of banks, the structure of the banking industry, and the major regulatory processes controlling banks.
• Evaluate monetary policy and its impact on economic growth and business cycle.
• Analyze the various theoretical approaches and models and assess their use in shaping monetary policy.
• Use technology and information resources to research issues in money and banking.
• Write clearly and concisely about money and banking using proper writing mechanics