A Research on Credit Crisis and General Economic Slowdown

A Research on Credit Crisis and General Economic Slowdown

Ben Bernanke in the past did a brilliant job in developing fundamental economic match ups. However, as time went by, Ben Bernanke’s position as Federal Reserve board chair person did not yield potent results. According to Naked Capitalism news reports on Monday November 30^th, 2009 he was the prime architect of the policies that build up the crisis.

Furthermore, he has put the interests of the banks ahead of those of ordinary people/citizens.  The citizens have suffered with the credit crisis as a result of his negligence to control the cash inflow and outflow. On the other hand, he assumed signs of the severity of the growing crisis and failed to prepare for obvious threats, such as the collapse of an investment bank.

All this facts among others have discredited his handling of the present credit crisis, as well as, the general economic slowdown. However, much he tries to improve the economy a question on, “the ability of central banks to make monetary policy decisions to profit the economy at long run” a rises. This situation has only left a colossal gap for him to qualify in resolving the economic slowdown.

Bernanke’s money printing and quantitive easing are not turning out to be an excellent chairman of the Federal Reserve Board. As a matter of fact, quantitative easing might result in a massive inflation or Hyperinflation. Although it has not yet been proven to exist, there is a possibility of it to be happening in U.S. in case he implements that idea. Furthermore, when he prints more money, there will be uncontrolled harkening of prizes resulting to hyper or massive inflation.  In addition, the money in supply would lose value due to inflation increased levels.

Reference:

Is this your assignment or some part of it?

We can do it for you! Click to Order!

Is this your assignment or some part of it?
We can do it for you!