The global financial crisis that started in 2007 had a big impact on the world economy and it's still recovering. This crisis is considered the worst since the Great Depression. Financial crises have happened before, like in Japan in the late 1980s and in Asia in 1997, but they weren't as bad as this one. The paper looks at why the crisis happened, what needs to be fixed, and what's wrong with macroeconomics. It focuses on global imbalances and the monetary policy of the Fed. The paper suggests macroeconomic policies for financial stability based on different economists' arguments.