The Federal Reserve district banks conduct periodic surveys of businesses in the

The Federal Reserve district banks conduct periodic surveys of businesses in their districts, and the findings are incorporated in the FED’s Beige Book. These insights, along with the banks’ quantitative analysis of business conditions, are important factors in their recommendations on monetary policy.
From your understanding of the ADAS model, an increase in aggregate demand puts upward pressure on prices and wages as the economy grows. Conversely, an economy in recession, experiences job losses and thus less demand for goods and services, particularly durable goods such as housing, cars and appliances.
In setting monetary policy, the FED looks at general trends in the economy. If employment is up and prices are rising, this may indicate pending inflation. To control inflation, the FED may start to raise interest rates – a contractionary monetary policy. An expansionary monetary policy, on the other hand, would lower interest rates in an effort to stimulate investment and spending in a sluggish economy .
For this week’s discussion board, please read the Beige Book Summary, followed by section (K-1) which is the district summary for the Dallas FED – roughly 4 pages. Here is the link:
Discussion Topic: Based on the reading for the Dallas Fed, the 11th district bank, give your recommendation on monetary policy as President of the Dallas Federal Reserve Bank. Should interest rates be raised, lowered, or stay the same (neutral position)? Support your decision with specific findings from the report.
Completing the Discussion Board Assignment
For all discussion board assignments, you are required to post your initial response to the Instructor’s discussion board question or topic by Thursday at 7 pm. This gives other students the opportunity to substantially respond to two other classmates by Sunday at 11 pm.
Discussion board topics are graded as follows:
Initial response = 50 points
Response to 1st student = 25 points
Response to 2nd student = 25 points
You are welcome to respond to as many classmates as you wish; however the assignment caps at 100 points.
The initial post should be at least 250 words in length.
Posts 2 and 3 should be thoughtful responses and be at least 3 sentences in length to receive credit. Responses should be related to the discussion topic to receive full credit.
All discussion board responses must be posted by the due date and time to receive credit.
(Make sure to respond to the students once when you’re able to send me the Initial Response. I’ll send their responses in our chat)