Research Wthe Direction Of Monetary Policy Over The

Research the direction of monetary policy over the last 3-5 years. Has the money supply increased or decreased ? Explain . have interest rates increased or decreased? Explain.Monetary policies are measures taken by the Federal Reserve to improve the state of the United States economy, by boosting employment stabilizing prices and increasing production. In the last three years, the Federal Reserve has focused on Expanding the supply of money as well as buying out government securities. These are measures normally taken in time of recession or when a recession is anticipated.In the last three years, the supply of money has increased despite the fact that the increase is not felt by business people and consumers (Colander, Adams &Daane, 2015, p. 47). This is because the money is held by the financial system whouse it to buy government securities. Banks on he contrary have reduced lending of money to small businesses to protect the country from inflation.Interest rates on the other hand have remained constantly low, at 0.25% since 2009, after having fallen steadily from 5.5% in 2007. Interest rates, which usually refers to the Federal Funds Rate is the rate at which banks borrow from one another in order to