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LEARNING OBJECTIVES
After you have read this section, you should be able to answer the following questions:
What monetary policy did the Fed pursue during the Great Depression?
Why is stabilization of the economy through monetary policy so difficult?
We finish this chapter by going back to the actual actions of the Fed and focusing on two periods. First, we consider the Great Depression from a monetary perspective. [***Chapter 7 "The Great Depression" discusses that period in more detail and pays more attention to fiscal policy.***] Then we consider the period leading up to the February 2005 announcement.
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