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Running head: MONEY AND BANKING
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Money and Banking
Name
Course
Professor
Date
MONEY AND BANKING
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Money and Banking
The article “This is No way to Run a Central Bank” highlights the role of the Central
Bank and the impact of politics on the functioning of a Central Bank. According to the article,
the pressure from the political divide appears to attract different criticisms. President Trump’s
nominee for the Fed’s board has controversial ideas that are directed towards the Central Bank.
The article takes a strong stance against the nominee’s ideas on the actions that the Central Bank
should take. The article elicits an insightful look into the monetary policy and the monetary
theory aspects.
According to the article, President Trump reiterated his campaign promise of reducing
the interest rates. He wants to achieve economic growth to the extent of ignoring the risk of an
eventual crash. Lowering interest rates is the primary objective of the Trump administration.
Thus, pursuing this objective led to seeking the nomination of Judy Shelton, an economist to the
Fed's board. From the lesson on macroeconomics, the concept of monetary policy and the
functions of the central bank will help in this analysis. The monetary policy comprises the
process involved in drafting and implementing the central bank's actions in a nation or other
monetary authority. Monetary policy deals with management of the supply of money and interest
rates that seek to achieve macroeco...