Monetary Policy and Inflation

Feb 3rd, 2012
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http://www.federalreserve.gov/newsevents/press/monetary/20111213a.htm 1. Monetary Policy and Inflation" Please respond to the following: From this week’s e-Activity, examine two methods that the Federal Reserve can implement to support a stronger economic recovery. Provide support for each method in your response. The methods which the Federal Reserve implements in order to support stronger economic recovery is to find a way so as foster maximum employment and also the price stability. This is because, there have been a moderate pace of employment growth over coming quarters and it soon anticipates that unemployment rate would have declined only towards levels which are put forwards. The implementation of maximum employment would certainly attribute to a settling down the inflation and overcome the coming quarters (Friedman, 2001). The price stability would certainly attribute to a stronger economic recovery because it would attain the same degree to which prolonged inflation and deflati

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