Paper , Order, or Assignment Requirements

Monetary Policy: What works?

Monetary policy by the US Federal Reserve is important for the US economy. However, economists disagree about several aspects of Federal Reserve decision-making powers including the composition of the Federal Reserve committees, Federal Reserve goals, and the actual impact of Federal Reserve policy on the economy. Address the following questions for this week’s assignment:

• Provide a brief (one paragraph) overview of this week’s material.

• Should the Federal Reserve Board focus exclusively on the problem of inflation?
• What other goals are appropriate for Federal Reserve policy?
• What is the appropriate goal for the inflation rate?
• How should the Federal Reserve Board use its policy to achieve its goals?
• How effective is the Federal Reserve monetary policy in achieving its goals?

• Is the composition of the decision-making bodies of the Federal Reserve appropriate for a democracy?