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Dual mandate.docx - The Dual Mandate of the FED According...

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The Dual Mandate of the FEDAccording to Foster, the Dual Mandate is "maximum employment and 'stable prices,"which refers to lack of employment and inflation. Although it might be confusing, it relativelydenotes maintenance of the prices of products and services paid over an arguably stability in along time and that the U.S. citizens seeking jobs in the country find them. The context termprimarily set of economic objectives fostering theFederal reservesevery maneuver (Foster2020). It simply means the federal funds available are used to steer the economy towards thedetermined dual mandate and ensure that it is an indication to decide on cutting the economy fora slow down or hiking it in the rates.However, it is essential to note that stable prices don’t necessarily mean zero inflation,nor does maximum employment mean zero employment. Given the natural churn in the labourmarket, unemployment always exists and sometimes it is, albeit healthier in such situations.While some entrants are facing seasonal spells in joblessness or ‘structural” hurdles, upcomingemployees are emerging into the labor realm. That is the reason, in most cases, experts will referto maximum employment with the term "full employment" (Foster 2020).
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Term
Summer
Professor
kennedy
Tags
Monetary Policy, Unemployment, Great Depression, Federal Reserve System, Sarah Foster

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