Chapter 15 - Assignment 3: Establishing Federal Reserve Inflation Goals

Read the Joint Economic Comittee's study entitled: "Establishing Federal Reserve Inflation Goals."

  1. What are the current goals of the Fed?
  2. What is the proposed target of monetary policy?
  3. What reasons are offered for using this goal?
  4. If the Fed actively pursued this target, would its policy be more "credible" than it has been in the past?
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