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In principle, this is what the Fed should be. But, in 1977 the Fed became tasked with managing "maximum employment, stable prices and moderate long-term intere
by aliston 12y ago
In principle, this is what the Fed should be. But, in 1977 the Fed became tasked with managing "maximum employment, stable prices and moderate long-term interest rates." This is one of the fundamental problems with the Fed's dual mandate -- its conceivable that those levers may be at odds with one-another.
- opendais 12y agoFair enough, I was focusing more on the fact the problem with the Fed isn't the Fed. The Fed is doing its job as best as any human can really expect it to function. The problem is Congress+Presidents repeatedly passing the buck and pandering, rather than being productive.