Business Finance
"Money and Monetary Policy and Inflation"

Question Description

examine two (2) methods that the Federal Reserve can implement to support a stronger economic recovery. Provide support for each method in your response. 

Final Answer

The first and most important method to rapidly recover from the economic downfall for the Federal Reserve is to control and stabilize product prices in the markets. The stabilized prices of the goods will regulate inflation and support the monetary policy of high money supply taken up by the Feds currently. The purpose should be to further increase money supply without any alterations in the inflation rate.

Another method for economic recovery would be control in resource allocation by reducing the federal funds to minimize the expenditures to control inflation rate. 

Ref: 

FRS (2011). Press Release. For Immediate release. September 21st 2011. [WEB] Retrieved from: http://www.federalreserve.gov/newsevents/press/monetary/20110921a.htm


Abdul H (39)
UC Berkeley

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