TITLE

What's Wrong With the Federal Reserve: What Would Restore Independence?

AUTHOR(S)
Meltzer, Allan H
PUB. DATE
April 2013
SOURCE
Business Economics;Apr2013, Vol. 48 Issue 2, p96
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The actual degree of independence of the Federal Reserve has varied over the years. This paper traces its history and finds that the Federal Reserve has been most successful in its dual full-employment, low inflation mandate when it follows fixed rules, and focuses on the intermediate term rather than trying to react to short-term developments under political pressure. Going forward, monetary policy should emphasize on annual monetary growth more and short-term interest rates less. A number of policies are recommended to support this overall emphasis on intermediate-term stability.
ACCESSION #
87656190

 

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