Analyzing the Impact of Federal Reserve Policy on Economic Stability in the Last Five Years

Bogdan Horshkov

Master's thesis

Abstract:

This thesis comprehensively analyzes the Federal Reserve's macroeconomic impact on the US economy's stability. This study applies quantitative research methodologies to assess the influence of monetary policy tools, such as the federal fund rate and quantitative easing volume, on crucial economic stability indicators, including GDP, inflation, and unemployment, during a period marked by significant challenges, including the COVID-19 pandemic. The research delves into the relationship between critical monetary policy tools and economic stability indicators. The analysis provides vital insights into the current state of the U.S. economy and the impact of the Federal Reserve in setting its direction. The study concludes by offering a series of policy recommendations to improve the efficacy of Federal Reserve policies in fostering future economic stability. This suggests potential areas for future research that can enhance our comprehension of the intricate relationship between monetary policy and financial outcomes.

Abstract:

This thesis comprehensively analyzes the Federal Reserve's macroeconomic impact on the US economy's stability. This study applies quantitative research methodologies to assess the influence of monetary policy tools, such as the federal fund rate and quantitative easing volume, on crucial economic stability indicators, including GDP, inflation, and unemployment, during a period marked by significant challenges, including the COVID-19 pandemic. The research delves into the relationship between critical monetary policy tools and economic stability indicators. The analysis provides vital insights into the current state of the U.S. economy and the impact of the Federal Reserve in setting its direction. The study concludes by offering a series of policy recommendations to improve the efficacy of Federal Reserve policies in fostering future economic stability. This suggests potential areas for future research that can enhance our comprehension of the intricate relationship between monetary policy and financial outcomes.

Keywords

monetary policy, economic stability, Federal Reserve

Keywords

Federal Reserve, monetary policy, economic stability

Language used: English

Date on which the thesis was submitted / produced: 15. 5. 2024

Thesis defence

• Date of defence: 2024
• Supervisor: Tanweer Ali
• Reader: Tomáš Pavelka

Vysoká škola ekonomická v Praze

Master programme:
Management