US vs. EU Monetary Policy

Essay specific features

 

Issue:

Miscellaneous

 

Written by:

Martha D

 

Date added:

December 18, 2015

 

Level:

 

Grade:

A

 

No of pages / words:

6 / 1418

 

Was viewed:

2627 times

 

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Essay content:

I will structure my remarks around three themes: the policy goals of the two monetary unions, their organization, and the monetary policy decision-making process in each system. Goals and philosophy Let’s begin by comparing the goals or mandates of the Eurosystem and the Federal Reserve System. In Europe the primary focus of monetary policy is to maintain price stability...
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In Europe the primary focus of monetary policy is to maintain price stability. In contrast, the Fed has multiple objectives for monetary policy. Their goals are to achieve maximum employment, stable prices and moderate long-term interest rates. An important explanation for their different mandates can be found by looking at their economic histories...
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