Exchange Rates - Exchange Rates From Last Time If the Fed...

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Exchange Rates From Last Time If the Fed keeps screwing up, why does Alan Greenspan get so much respect? (1) because he's so powerful and (2) the current expansion has lasted 7 years If the money supply is so hard to control, how do you effectively deal with a demand side problem? Although the money supply is hard to control, monetary policy does have a large impact on the economy. Are wars bad or good overall for our economy? Bad. They use up resources that could have been employed for something more productive. Although they can increase output and employment, they also lead to inflation which generally is followed by a recession. In your explanation of free reserves targeting, interest rates increased, yet discount loans increased. Aren't interest rates and discount rates positively correlated? Given the discount rate, a rise in market interest rates makes discount borrowing more attractive.
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