New chances on Monetary Policy

In class we learned that during the initial years of the great depression the US economy was unable to engage in monetary policy, to stimulate the economy, because the US was committed to upholding the gold standard. In 1933, when the US relieved themselves of the gold standard they were then free to use monetary policy. This article is about the US present day economy and how Federal Reserve Bank of Chicago President Charles Evans argues that we need to take new chances with monetary policy to bounce back from this recession faster. Some of the changes Evans believes would be a “good idea” would be for the, “Fed to make more asset purchases, perhaps in the form of Treasury’s or mortgage-backed securities.”

http://online.wsj.com/article/BT-CO-20111115-713047.html