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Please see the articles from the link above, and select a monthly newsletter to review. Please click on PDF of Classroom Edition. Please Note: Prior to the February 2012 issue, the newsletter was published under the title Liber8 Economic Information Newsletter. After writing your Article Review, combine your review with the ideas/concepts presented from the textbook. Make sure to provide at least 3 pages (750 to 1,000 words) using APA style.

You must also include a reference page at the end of your summary. You have seven weeks to complete this assignment, with a due date at the end of Week Seven. No late papers will be graded. Therefore, make sure to submit before Midnight, Tuesday- Week Seven. Any paper submitted after that time will be awarded a zero score, regardless of reason.

Suggestions: 1. Do not limit yourself only to the material from the textbook. You may want to include references from the Internet, or additional library research, etc. However, you must (at least) include detail from our textbook. 2. Start early. You may work on the paper immediately, up to the end of Week Seven. Remember that any late paper will receive a zero score. You may submit your assignment when completed (Week One through Week Seven). 3. Proofread your work. A spelling and grammar check does not always find improper word usage. For example; to, too, and two would all be okay—but they have different meanings. Also, don’t forget to check spelling and grammar…! PS - If possible, please check the document until it removes all red, green, or blue underline squiggles. Those highlights make it difficult during the grading process. 4. This paper represents 12% of your course grade. Therefore, if you need writing assistance, seek out the services of the Student Success Center. They have tutors who would be happy to review your work before you submit for a final grade. Make sure to leave enough time for their review and your revisions (if necessary). 5. Apply real-world content to your review. You may want to highlight current events, etc., to show the relevance in today’s economic environment. 6. Do not rush this assignment. The article review represents a significant portion of your grade, and allows you to show off your scholarly talents. Research and writing skills are very important to employers, along with being a helpful exercise for personal growth. Mishkin, F. S., & Eakins, S. G. (2012). Financial markets and institutions (7th ed.). Upper Saddle River, NJ: Prentice Hall.

Paper For Above instruction

The newsletter from the St. Louis Federal Reserve provides valuable insights into current economic trends and policy developments, offering a rich source for economic analysis and real-world application. For this review, I selected the February 2023 issue of the newsletter, which emphasizes inflation dynamics, monetary policy responses, and employment trends—topics that resonate with core concepts from Mishkin and Eakins (20112). The integration of these contemporary issues with academic theory enhances understanding of how macroeconomic policies are implemented and their impact on different economic agents.

One of the main themes in the newsletter concerns inflation—its recent increase and the Federal Reserve’s strategies to contain it. The article details how inflation rates, as measured by the Consumer Price Index (CPI), have risen above the Fed’s target of 2%. This surge reflects supply chain disruptions, elevated energy prices, and expansive fiscal measures implemented during the pandemic. Mishkin and Eakins (2012) explain that inflation can be viewed as a rise in the overall price level caused by excess demand or cost-push factors. The newsletter’s emphasis on supply-side constraints aligns with the traditional Phillips Curve framework, which suggests an inverse relationship between inflation and unemployment; however, recent data shows that inflation can persist even in the face of high unemployment due to supply shocks, complicating policy responses.

The Federal Reserve’s response, as described in the newsletter, involves raising the federal funds rate to tighten monetary policy. This aligns with the textbook's explanation that increasing interest rates reduces spending and borrowing, which contracts economic activity and helps curb inflation. Mishkin and Eakins (2012) stress that such policy tools are crucial for managing inflation expectations and stabilizing prices. However, the newsletter also highlights concerns about the lag effect of monetary policy, where the impacts on employment and growth may not be immediate. This delay underscores the importance of forward-looking decision-making in monetary policy, a concept thoroughly explored in academic literature.

Employment trends form another focal point of the newsletter. Recent data indicates a robust recovery in the job market post-pandemic, with unemployment rates falling close to pre-pandemic levels. The article attributes this recovery to strong consumer demand, fiscal stimulus, and the flexibility of the labor market. These developments can be analyzed through the lens of the Classical and Keynesian theories covered in the textbook. Classical economics emphasizes that flexible prices and wages will naturally clear markets, leading to full employment, while Keynesian theory suggests that active policy measures are necessary to address unemployment caused by demand deficiencies. The concurrent strength in employment and inflation as reported in the newsletter aligns more with the economic concept of a short-run trade-off described by the Phillips Curve, complicating the policy challenge of balancing inflation control with employment growth.

Furthermore, the newsletter discusses the implications of global economic conditions, including supply chain disruptions and geopolitical tensions, which influence domestic economic policies. These external shocks support the textbook’s discussion on open economy models and how international factors can affect macroeconomic stability. The interconnectedness of global markets means that domestic monetary policy must be carefully calibrated considering international developments—a concept that emphasizes the importance of comprehensive economic analysis.

In conclusion, the newsletter effectively contextualizes core macroeconomic concepts—including inflation, monetary policy, unemployment, and international influences—within the current economic climate. The integration of real-world data with theoretical frameworks from Mishkin and Eakins (20112) demonstrates the practical relevance of economic principles. Understanding how central banks respond to economic fluctuations, manage expectations, and navigate global pressures is pivotal for both policymakers and students of economics. This analysis underscores the importance of timely and informed economic policymaking to achieve stability and sustainable growth.

References

• Mishkin, F. S., & Eakins, S. G. (2012). Financial markets and institutions (7th ed.). Upper Saddle River, NJ: Prentice Hall.
• Federal Reserve Bank of St. Louis. (2023). February 2023 Newsletter. Retrieved from http://research.stlouisfed.org/pageone_economics.
• Blanchard, O., & Johnson, D. R. (2013). Macroeconomics (6th ed.). Pearson.
• Friedman, M. (1968). The role of monetary policy. American Economic Review, 58(1), 1–17.
• Krugman, P., & Wells, R. (2018). Macroeconomics (5th ed.). Worth Publishers.
• Taylor, J. B. (1993). Discretion versus policy rules in practice. Carnegie-Rochester Conference Series on Public Policy, 39, 195–214.
• International Monetary Fund. (2022). World Economic Outlook. IMF Publications.
• Bloomberg. (2023). Fed hikes interest rates to combat inflation. Retrieved from https://www.bloomberg.com
• The Economist. (2023). Supply chain disruptions and inflationary pressures. Retrieved from https://www.economist.com
• Congressional Budget Office. (2022). The Budget and Economic Outlook. CBO Publications.