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Federal Reserve And Monetary Policy

Federal Reserve and Monetary Policy

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Title: Federal Reserve and Monetary Policy

Essay Details:

Subject: Business

Author: Kaley L

Date: May 20, 2014

Level: University

Grade: A

Length: 16 / 4536

Essay text:

And, because the US is the largest economy in the world, its monetary policy also has significant economic and financial effects on other countries. The object of monetary policy is to influence the performance of the economy, as reflected in such factors as inflation, economic output, and employment. It does so by affecting demand. Most people are familiar with the fiscal policy tools that affect demand, such as taxes and government spending. Less familiar is monetary policy; it is conducted by the Federal Reserve System, the nation’s central bank, and it influences demand mainly by raising and lowering short-term interest rates...

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