Questions: According to the video, what are some of the events for which the Fed has been blamed? Select all that apply. 1970s inflation, lack of transparency, 1933 Great Depression, 2007 Recession

According to the video, what are some of the events for which the Fed has been blamed? Select all that apply. 1970s inflation, lack of transparency, 1933 Great Depression, 2007 Recession
Transcript text: According to the video, what are some of the events for which the Fed has been blamed? Select all that apply. 1970s inflation, lack of transparency, 1933 Great Depression, 2007 Recession
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Solution

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Answer

The answer is:

  • 1970s inflation
  • 1933 Great Depression
  • 2007 Recession
Explanation
1970s inflation:

The Federal Reserve has been blamed for the high inflation rates during the 1970s. This period, often referred to as the "Great Inflation," saw significant increases in prices, which many attribute to the Fed's monetary policies at the time.

1933 Great Depression:

The Federal Reserve is also criticized for its role in the Great Depression, particularly for not acting aggressively enough to prevent bank failures and for maintaining tight monetary policies that exacerbated the economic downturn.

2007 Recession:

The Fed has faced criticism for its role in the 2007-2008 financial crisis, also known as the Great Recession. Critics argue that the Fed's policies leading up to the crisis, including low interest rates and inadequate regulation of financial institutions, contributed to the housing bubble and subsequent economic collapse.

Not having a governing body:

This is not a valid criticism as the Federal Reserve does have a governing body, the Board of Governors.

Lack of transparency:

While the Fed has faced criticism for lack of transparency in the past, it is not one of the major events for which it has been blamed in the context of the question.

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