Professional Custom Accounting: Should the Federal change some of its current monetary policy targets, such as the 2-percent inflation target?
- Use data from the Fed publications and other sources to support all of your positions.
In your discussion make sure that you cover:
- The monetary policy tools.
- The ways in which the Federal Reserve adjusted the tools in response to the financial crisis of 2007–2009.
- Based on your research, did the financial crisis of 2007-2009 compromise the independence of the Federal Reserve?
- The strengths and weaknesses of using monetary policy versus fiscal policy when promoting economic activity and preserving price stability.
- Based on your research, should the Federal change some of its current monetary policy targets, such as the 2-percent inflation target?