Monetary Policy And Economic Fluctuations

Introduction:The current economic scenario in the USA is not a very comfortable one. In comparison to 5 years ago, where the economic scenario was really tough, now the scenario has stabilized. Though the stability is not in the desired direction, the growth parameters have been good enough.Comparison:In order to give the necessary stimulus to the economy the interest rates in 2008 were cut many times. The interest rate that started at 3.5% in the beginning of 2008 feel down to 1% by the end of 2008.the Federal Reserve reports that today the interest rates are lower by 3/4% of what it was in 2008. Another macroeconomic indication is the consumer price index. The buying power of the American dollar has increased over 2008.it has increased to $1.08 currently.The inflation rate in 2008 stood at less than 1$ in 2008 while currently it stands at 2.1% The economy has been growing after the recession but not in the natural growth rate .the economic growth rate has not exceeded 2.25% .Unemployment levels are still high but not as high as what it was in 2008. The current unemployment rate in the USA is 7.3%