PLEASE ANSWER THOSE QUESTIONS
1. The article suggests that investors would withdraw their money if interest rates turn negative. Do you agree that if interest rates offer a negative return, investors would necessarily withdraw their money to hold as cash or spend?
Explain your response.
2. What is “quantitative easing”? Briefly describe how it works.
3. What is “forward guidance”? Briefly describe how it works.
4. Do you agree with Christina Romer’s approach to promote a quicker economic recovery?
Explain your response.
5. In your opinion are current Federal Reserve policies inflating asset prices?
Explain your response.
