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Essay / t in this argument. Some economists blame the Federal Reserve's inaccurate monetary policy. The accommodative monetary policy pursued since 2001 deviated from the Taylor rule. (Alex, 2013) This caused the benchmark interest rate to remain low. Then, excess liquidity created an asset bubble. Eventually, the bursting of the asset bubble hit the financial system. (Pierpaolo,B and Woodford,M, 2003)On the other hand, in the middle of the paper...the policy provided more empirical evidence. They prove the responsibility of monetary policy. When the Federal Reserve decides on monetary policy, authorities must follow the Taylor rule. Additionally, the Federal Reserve has a poor record of monitoring the financial market. Many banks did not have sufficient capacity to assess their risk. The Federal Reserve and other supervisory institutions should require these banks to improve their ability to assess risk. The demonstration in this research is simple and the resources are not rich enough. The question of the relevance between monetary policy and the real estate bubble remains unanswered. The level of effect of monetary policy on the financial crisis has not yet been assessed. In future research, opinion should be provided from multiple aspects and more powerful evidence..
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