Analysis

After the 2008 Great Recession, government implemented policies of - quantitative easing - reduced interest rates To increase spending. Moves demand. Output back to potential

Evaluation

Short run

• Stimulated growth. Everything mentioned in analysis.

Long run

• Inflation rates increased about 2% target. However, it did stabilized after 2012.

Pros

• They fixed the American economy so thats good

Cons

• Further increases unequal income distribution. Asset holders tend to benefit more from quantitative easing.\
• Stats: the top 10% of the wealthiest people held a higher percentage of America’s wealth compared to before and after the implementation