Economics Principles For A Changing World
4th Edition
ISBN: 9781464186660
Author: CHIANG, Eric P.
Publisher: Worth Publishers,
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Question
Chapter 24, Problem 1QP
To determine
Explain why it is important for the Fed to be independent.
Expert Solution & Answer
Explanation of Solution
It is Important for the Federal Reserve Board to be independent because independence permits the Federal Reserve Board to concentrate on inflation, along with proper concerns about the output and employment. If it is not independent, then it tends to have a higher long- run inflation rate in the economy.
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Chapter 24 Solutions
Economics Principles For A Changing World
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