Question Description
I'm working on a macro economics discussion question and need a sample draft to help me learn.
Please read 4 articles posted to the Federal Reserve site. Select one of the issues associated with the Monetary Policy principles and practice and express your opinion about this matter. Use the Federal Reserve’s policy page as a reference: https://www.federalreserve.gov/monetarypolicy/monetary-policy-principles-and-practice.htm. On that page, pay specific attention to the following sections:
§ Monetary Policy: What Are its Goals? How Does It Work? https://www.federalreserve.gov/monetarypolicy/monetary-policy-what-are-its-goals-how-does-it-work.htm
§ Historical Approaches to Monetary Policy. https://www.federalreserve.gov/monetarypolicy/historical-approaches-to-monetary-policy.htm
§ Challenges Associated with Using Rules to Make Monetary Policy. https://www.federalreserve.gov/monetarypolicy/challenges-associated-with-using-rules-to-make-monetary-policy.htm
- § Monetary Policy Strategies of Major Central Banks. https://www.federalreserve.gov/monetarypolicy/monetary-policy-strategies-of-major-central-banks.htm
Explanation & Answer
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Running head: MAKING MONETARY POLICY BASED ON RULES
Making Monetary Policy Based on Rules
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Running head: MAKING MONETARY POLICY BASED ON RULES
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Making Monetary Policy Based on Rules
While rules are considered useful in making monetary policy, the Board of Governors of
the Federal Reserve System warns against strictly adhering to rules (“Challenges,” 2018). This
stance seems counte...