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Is only a proposalFinal Paper Monetary Theory and Policy Fall 2019Proposed Topic due November 15 at class or via Dropbox in Sakai Completed Paper Due December 16 noon via Dropbox in Sakai  The goal of this assignment is to develop a policy memo identifying an issue, coming up with a recommended course of action, and providing a persuasive argument for the recommendation, an exploration of any risks and challenges in that course of action, and a description of at least one alternative to the recommended policy action.  The paper should be short—roughly five pages and no more than 7 pages.  The paper can be organized in any manner, but should clearly answer each of the six questions below.  The audience for the memo is a member of the central bank’s monetary policy committee.The topic of the paper is your choice.  It could be a topic that we are covering in class, a topic that is high on the agenda of monetary policy authorities such as the Federal Reserve, or a monetary policy-related issue that you are interested in.  It’s important that you can draw a connection to monetary policy.  In addressing the issue, there are no right answers.  What matters is the quality of your arguments and marshaling of facts and theory in support of the arguments. Your paper should address th

e following questions.Describe the issue you’ve chosen. What problem are you addressing?  In describing it, use language that sophisticated, but not necessarily technical, people can easily understand.  (20 points)How important is this issue to monetary policy? Why is it important now?  (10 points)What are two or three possible policy actions to address this issue? A decision to take no action is also a policy action.  (20 points)What have you chosen as your recommendation for the best course of action? What are the arguments in favor of this action, the potential benefits?   What are the potential costs, monetary and nonmonetary? (25 points)What are the risks and challenges in pursuing the recommended course of action? What could go wrong? (15 points)What is the next best alternative to your potential course of action? Why?  (10 points)  Answer Preview……………..Monetary policy is concerned with the issue of liquidity of financial institutions. According to the Federal Reserve, all banks must adhere to reserve requirements. The supply of money reduces when the requirements of reserve are raised causing financial institutions to decrease loans and credit availability. Decrease in loans and credits has negative impacts on……………..APA 348 words
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