ECO 372 Week 3 DQ 2

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Take a look at this the video "Monetary Policy: Part Art, Part Science" located at: http://youtu.be/UlY2f2_Hrwk

Discuss the role of the Federal Reserve in monetary policy. What does the Fed claim its primary role to be. What tools does the Fed use to meet their objectives? Has the Fed been successful in meeting its objectives in the recent recession? Why or why not? Are there compelling arguments against the Fed?


Response :

The role of the Federal Reserve in monetary policy is to decide and implement monitory policy. The Federal Reserve is responsible for collecting important date such as economic theory on the privet sector and computer models that represent the current economy growth. Monitory policy is basically short term interest rates that are created when money is borrowed and it is up to the Federal Reserve to keep the rates balanced and inline with the current and future economy.
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