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What is the appropriate goal for the inflation rate

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Reference no: EM132732717

Question: Monetary Policy: What works?

Monetary policy by the 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 Federal Reserve of policy on the economy.

• 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 Federal Reserve monetary policy in achieving its goals?

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

Reference no: EM132732717

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