Federal Reserve and Monetary Policy
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The paper discusses how monetary policy, as controlled by the U.S. Federal Reserve, is a powerful economic force; money has been developed as a medium of exchange, facilitating trade and allowing the accumulation of wealth. The paper relates that the Central Bank manages America's monetary system, through a variety of changing policies, to ensure the economy runs as smoothly as possible. The paper then discusses how the recent direction of the Federal Reserve's monetary policy is to correct the economic crisis America is currently in and to this effect, they have taken several actions. The paper describes how many are geared to the loosening of the credit market, while others involve more non-traditional methods of interacting with global financial bodies, and through monetary policy, the Federal Reserve can either positively or negatively impact productivity and the economy.
From the Paper:"This paper overviews topics of the U.S. Federal Reserve's monetary policy. The purpose and function of money is defined. How the central bank manages a nation's monetary system is explained. The stated direction of recent monetary policy in the United States is outlined, along with a policy action that the Federal Reserve has taken to confirm that direction. Lastly, the effects of monetary policies on the economy's production and employment is explained."
Cite this Term Paper:
Federal Reserve and Monetary Policy (2004, December 01) Retrieved January 18, 2021, from https://www.academon.com/term-paper/federal-reserve-and-monetary-policy-144590/
"Federal Reserve and Monetary Policy" 01 December 2004. Web. 18 January. 2021. <https://www.academon.com/term-paper/federal-reserve-and-monetary-policy-144590/>