Monetary Solutions for Inflation after COVID-19
In
Economic Policy
By
Kyan Howe
Given that the recent increase in inflation has impacted the U.S. economy in unprecedented ways, the Federal Reserve’s (Fed) response has become increasingly imperative. Namely, the contractionary monetary prescription—which the Fed has supplemented with quantitative tapering—is of critical importance in regards to the future of the U.S. economy. As such, this brief will address imperative issues with the Fed’s actions in regards to tapering, and recommend certain policies that can aid the Fed to reduce the supply of the circulating medium.


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