Monetary Economics

1. Imports IncreaseFed lowers interest rates during a recessionFederal Government lowers taxes and increases transfer payments during a recessionNew oil reserves are discoveredPrices of treasury bonds increaseThe dollar depreciatesConsumer confidence increases due to widespread distribution of the Covid-19 VaccineCapital inflows decrease as the credit agencies lower the government’s credit score due to large deficitFinancial Instability and CrisesHow does profitability and expectations about profitability lead to economic crises?What is the financial instability hypothesis? What are the different levels of financial instability?What is the relationship between profitability, financialization and the Great Recession?