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Essay

Federal Reserve and Monetary Policy

Essay specific features

 

Issue:

Business

 

Written by:

Sharon S

 

Date added:

March 4, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

17 / 4536

 

Was viewed:

2642 times

 

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Essay content:

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...
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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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