The Fed

The feed federal Reserve and the Economic Bubble On Tuesday, November 16, 1999, the federal Reserve Board will decide whether or not to tighten monetary policy at the federal officialeral Open Market Committee meeting. Throughout the year the Fed has been somewhat hesitant to raise rates, which could slow the economy. While genteelness the Federal Funds and Discount Rates could, in the bulky run, lead to higher interest rates, many people worry that the potential for an overheated economy is high, and there is little peril from too slow growth. Overheating in the economy, popularly cope 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 arouse sure that economy is operating at full potential (stabilize employment and production). Data proves that both have been fulfilled. Price inflation 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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