Reference no: EM131400748

Resolve this dispute:

Jane Peoples: "Independence of the Federal Reserve System is a scandal in an otherwise democratic country. The chairman and his banker cronies can tighten the money supply, raise interest rates, and throw the economy into a recession whenever they feel like it. Because they are independent, there is nothing the president, the Congress, or the people can do to stop them."

Bob the Banker: "And thank goodness! If macroeconomic policy were left up to the government, the recent budget deficits would have been matched by undisciplined, loose-money policies, and as a consequence we would have experienced runaway inflation like many other countries. The evidence is clear: the government cannot be trusted to impose the discipline that is needed for the smooth running of a modern industrial economy."

Jane: "You sound like the king of France before the revolution. You forget that this is a democratic country. Our parents and their ancestors shed their blood so that we could be free, so that the people could rule. When the people rule, they make some mistakes, sure, but they do their best to advance the welfare of everyone. We have to get monetary policy out of the hands of an elite, anti-people, banker-oriented oligarchy."