You need to write a 3,000 words minimum essay on the differences in unconventional monetary policies between the European central bank (ECB) and the Federal Reserve (Fed) for the 2007-2008 crisis to today. The essay must give a detailed account of the different tools used by the ECB and the Fed. One difference, for instance, has been that while the ECB has used negative interest rates and a corridor system, the Fed switched from a corridor system to a floor system (see the following book: Selgin (2018), Floored.)

Facts need to be carefully referenced using the APA style. Looking at the academic literature is highly encouraged. Part of the assignment’s goal is to teach you how to make a research report (a skill which is valued for many jobs both in the private and public sector). You should research using 1) Google, 2) Google scholar, 3) Jstor, 4) looking at the work referenced in the papers and sources you read, 5) Fred ( if you want to use graphs to illustrate what has happened (something I would encourage).

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Writing something does not entitle you to 30 extra credit points. To get 30 points, your work must be detailed, thorough and thoughtful. Students giving a convincing explanation why the ECB and the Fed reacted differently, for instance, will be much more likely to get a good grade on this bonus assignment.

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