This project challenges you to critically discuss fiscal and monetary policies as well as their combined use in the IS/LM model. To do so, first, carefully study the textbook Focus on “The US recession of 2001,” and think through the effectiveness of the policy mix adopted to aid recovery. Second, consider the recession that the US is currently experiencing: argue on the basis of your understanding of IS/LM and the current US macroeconomic trajectory for a specific fiscal and monetary policy response. Please focus on fiscal and monetary responses (rather than health policy responses that may help the economic recovery.)
In summary, write
one (roughly) 100 word paragraph on your assessment of the 2001 recession, and
one (roughly) 100 word paragraph on your recommended policy response to the current recession.
Please engage your classmates’ posts in constructive debate!
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