High degree of instrument independence

Assignment Help Business Economics

Reference no: EM131392017

In what way does the Federal Reserve have a high degree of instrument independence? If it has a specific dual mandate from Congress to achieve "maximum employment and low, stable prices", then how does it have goal independence?

Reference no: EM131392017

Questions Cloud

Recently secured an employment with medical benefits : You recently secured an employment with medical benefits. Is there a difference in your demand for medical care services before and after employment? Use two demand curves to show your consumption of medical care before and after this employment.

These goals consistent with profit maximization : If the goal of the firm is both short- and long-run profit maximization, Discuss goals a firm might have which seem to not agree with profit maximization. are these goals consistent with profit maximization?why or why not?

The recent financial crisis : The money multiplier declined significantly during the recent financial crisis of 2008 - 2010. Why did the money multiplier decline in this period? Yet, the M1 money supply increased by more than 20 percent during the recent financial crisis. What ex..

Large dollar-denominated external liabilities : Many large developing countries with large dollar-denominated external liabilities experienced large depreciations of their currencies between 1990 and 2003. What effects, if any, did these depreciations have upon these countries' external wealth and..

High degree of instrument independence : In what way does the Federal Reserve have a high degree of instrument independence? If it has a specific dual mandate from Congress to achieve "maximum employment and low, stable prices", then how does it have goal independence?

European central bank pursues contractionary monetary policy : If the European Central Bank pursues a contractionary monetary policy, what will happen to the value of the U.S. dollar? Specifically, will the dollar appreciate or depreciate. Include the relevant graph and a brief explanation. You must use the asse..

How big is the net gains from free trade : Suppose the domestic demand of corn in country Y can be represented by the equation QD = 80 – 2P and the domestic supply by QS = -10 + P. The world price of corn is $35. How much are the consumer surplus and producer surplus if the country is in aut..

The economy is currently in equilibrium at full employment : The economy is currently in equilibrium at full employment. Suppose that the Fed increases money supply growth by 5 percent. Using an aggregate demand and supply graph, explain exactly what happens and why to aggregate output (real GDP) and the infla..

What happens to the federal funds rate : Assume that the required reserve ratio is 10 percent. If the public withdraws $100 million from their checking accounts and holds it as currency, what happens to the federal funds rate?

User Account

All Pages