While the Federal Reserve is an independent entity, it is still
subject to the political process. In an extreme case, the U.S.
Congress could rewrite and pass laws that govern how the Federal
Reserve does its job.
Identify a potential change (for example, targeting interest rates
or targeting the balance of the money supply in the economy) you
would make to how the Federal Reserve operates and explain why you
would change it.
One such issue is of controlling inflation. The fed quite often targets interest rates by raising discount rate. Now controlling inflation is OK but in the process growth rate is curtailed. This is because cost of raising credit and funds for investment and to some extent fnancing consumption rise. To avoid this situation I would like to set some guidelines regarding how the Federer reserve operates in this situation. I will like to mention expressly that under such situation growth rate should be preferred over inflation
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