Macroeconomics
Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Chapter 31, Problem 20APA
To determine

Identify the policy changes if the congress decides to ban the powers of the Fed to change the interest rate.

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What is the appropriate monetary policy to be implemented by the Federal Reserve System during periods of high inflation? Explain the steps the Fed will take.
Are you concerned about the inflation come back due to such easy monetary policy with zero interest rate for long time? if so, how fast is the Fed supposed to tighten its monetary policy as an  normalizing strategy?
During the early months of the pandemic, the inflation rate fell well below the 2% target which would have alerted the Federal Reserve Bank to take action. Why was that the case? Did the Fed have anything to do with that process?
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