During the 2008 recession, the Federal Reserve started to follow “unconventional” monetary policies to kick-start the economy. Explain what is an unconventional monetary policy. How is it different from a conventional monetary policy? What are the possible dangers of following an unconventional monetary policy? Did this policy achieve its desired result?
2. What are the costs and benefits of unexpected inflation? How are they different from that of expected inflation?
3. What is the classical dichotomy? Explain using the theories and examples taught in this course.