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Because economies tend to get carried away. The fed comes in to pump the breaks by lowering/raising interest rates.
by DSingularity 8y ago
Because economies tend to get carried away. The fed comes in to pump the breaks by lowering/raising interest rates.
- NTDF9 8y agoWhy can't the government do that with structural changes? What is the role of the money supplier?
- klodolph 8y agoSince we have fiat currency we must therefore have monetary policy. We can either adjust our monetary policy in response to changes in the economy or we can nail it to a peg and hope that it works.