Economics Questions: The Federal Reserve System

Read critiques of the Federal Reserve System’s monetary policy (such as “The politics of the Fed: Bernanke in the crosshairs”) and corresponding rebuttals (such as “American Monetary Policy: Fed under fire”).

1. Do the comments in the articles seem to be politically motivated?

2. Which comments seem to be based on mainstream economic theory?

3. Which comments do not seem to be based on mainstream economic theory? If they are not based on mainstream economic theory, what motivates or supports these ideas?

These articles do have comments based on mainstream economic theory. It talks about the Federal Reserve lowering long-term interest rates, which does increase spending and helps the housing market, which was in a downturn in 2010. The article also shows that the Fed’s responsibility is to promote growth and employment, which is the main vision for the Federal Reserve while keeping prices and inflation steady...

This is only a preview of the solution. Please use the purchase button to see the entire solution