With the news of today's FOMC meeting and the decision to engage in a $600 billion Quantitative Easing program, it seems like the Fed is reaching deep into its bag of tricks to get the economy moving. However, despite the size of the action, it is really unknown (and unclear) if this will have much effect. But, it seems on balance to be better than doing nothing (which is what fiscal policy is doing).
The New York Times has posted a graphic timeline of Fed policy in this crisis. It is a good teaching tool.
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