Purchase Solution

chairman of the Federal Reserve Board

Not what you're looking for?

Ask Custom Question

I need some assistance with the following for my Economics for Business class:

1.True or false: The Federal Reserve Board is the nation's number one inflation fighter. Discuss why.

2.Who is the chairman of the Federal Reserve Board. What is his background? What does he believe? How effective has he been? Discuss further.

3.Milton Friedman believes in a steady growth monetary policy. What does that mean and critique this approach.

4.Is our current unemployment rate is above or below "full employment." What fiscal or monetary policies can be used to increase employment

Purchase this Solution
Solution Preview

1. Certainly the Fed takes the threat of inflation very seriously, and is probably our best defense against it. Nonetheless there remains some question as to how effective it is. In spite of the Fed's lowering interest rates, long-term interest rates may not respond as they are tied to public debt. They also reflect the expectation of inflation and long term growth prospects.
Some good commentary on the topic is available at http://www.williampolley.com/blog/archives/2005/10/what_determines.html

In order to fully control the economy, both interest rates and money supply must be chosen with care. The Fed faces a dilemma in that it cannot control both the money supply and interest rates. Suppose money demand curve shifts outward. This will no longer allow for equilibrium at its desired interest rate or money supply. In addition, the efforts of the Fed are often frustrated by fiscal policy. An ever-expanding Federal budget with a tax base to support it has often forced the Fed to monetize the deficit and consequently to increase the growth of the money supply beyond the intended target. The government essentially crowds out private borrowers by pushing interest rates to level unacceptable to business ...

Purchase this Solution
Free BrainMass Quizzes
Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

View More Free Quizzes
Related BrainMass Solutions

  • Federal Reserve explained in this solution

    Before being the chairman of the Federal Reserve Board, he has served the board as a visiting scholar at different Federal Reserve Banks, member of the Federal Reserve Bank, New York's Advisory Panel and member of the board of governors in the Federal

  • Role of Federal Reserve and It's Impact on the Economy

    565892 Role of Federal Reserve and It's Impact on the Economy Explained the role of the U.S. Federal Reserve, the Federal Reserve Chairman, and Board, indicating its effectiveness in today's economic environment.

  • Press Conference Speech of Chairman Ben Bernanke

    Two key areas discussed during the press conference was the Federal Open Market Committee statement and the reviewing of the summary of economic projections by Federal Reserve board members.

  • The Federal Reserve System

    The FOMC elects the chairman of the Board of Governors as its chairman and the president of the New York branch of the Federal Reserve Bank as its vice chairman.

  • This addresses the organization of the Federal Reserve.

    463407 This addresses the organization of the Federal Reserve. Explain in detail the organization of the Federal Reserve System. The Federal Reserve System (known as the Fed) is an independent agency that reports to Congress.

  • Federal Reserve and Fiscal Policy in relation to the economy and financial markets.

    Federal Reserve Board. Reserve Requirements.

  • Federal Reserve

    172192 Federal Reserve Go to the Federal Reserve's home page at www.federalreserve.gov. Who is the chairman of the board? For how long has he or she served? Who are the governors of the board?

  • Complexities of the U.S. Financial System

    Federal Reserve, the Federal Reserve Chairman, and Board, indicating its effectiveness in today's economic environment. Provide support for rationale.

  • Federal Reserve

    I think that Chairman Bernanke (this is the correct spelling) made the correct decision to not raise the interest rates because the goal of the Federal Reserve Board is to hold a balance between inflation and recession The Board's decision to halt

  • The Federal Reserve

    President Woodrow Wilson signed the Federal Reserve Act on Dec. 23, 1913, creating a seven-member board of governors, including the Fed chairman, and 12 regional banks ? a structure collectively known as the Federal Reserve System.

View More Related Solutions