The Fed

The feed federal Reserve and the Economic Bubble On Tuesday, November 16, 1999, the federal official Reserve Board will decide whether or not to tighten monetary policy at the feederal Open Market Committee meeting. Throughout the year the Fed has been somewhat hesitant to raise rates, which could slow the economy. While conduct the Federal Funds and Discount Rates could, in the coarse run, lead to higher interest rates, many people shake up that the latent for an overheated economy is high, and there is little assay from too slow growth. Overheating in the economy, popularly chicane as the economic bubble, could reverse the current decline in fanfare.

Therefore, action should be taken to prevent such a thing from happening. The purpose of monetary policy is to stabilize prices and spring up sure that economy is operating at full potential (stabilize employment and production). Data proves that both have been fulfilled. Price splashiness is low at 2% and unemployment is close to 4%. (Bureau of ...If you flock to get a full essay, order it on our website: BestEssayCheap.com

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