19 Jun When policymakers get the economic forecast wrong it can have significant and long-reaching consequences.
When policymakers get the economic forecast wrong it can have significant and long-reaching consequences. A recent example of this is the 2008 financial crisis and recession caused significantly by a housing bubble fueled by sub-prime mortgage lending. Analyze the policymakers' choices leading up to 2008. Paper would need to be at least 5 pages
- Identify and explain the key actions/missteps of policymakers
- Discuss the theoretical foundation that motivated the policymaker.
- What assumptions guided their choices?
- What political factors influenced their choices?
- Make at least 1 recommendation on how these missteps could have been avoided.
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