THE MONETARY POLICY OF THE FEDERAL RESERVE SYSTEM
THE MONETARY POLICY OF THE FEDERAL RESERVE SYSTEM

Summary/Abstract: The Federal Reserve System is the central bank of the United States. It was founded by Congress in 1913 to provide the nation with a safer, more flexible and more stable monetary and financial system. Over the years, its role in banking and the economy has expanded. The Federal Reserve is the authority that sets the american nation’s monetary policy, in order to promote the objective of maximum unemployment, stable prices, and moderate long-term interest rates. The challenge for policy makers is that tension among the goals can arise in the short run and that information about the economy becomes available only with a lag and may be imperfect. In this article we provide an overview of the Federal Reserve monetary policy through analyzing some important features like: historical background, central bank independence, monetary policy strategy.

• Details
• Contents