Fed - Fed's Policy Procedures From Last Time Has the Fed...

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Fed's Policy Procedures From Last Time Has the Fed ever failed at its targets and caused the goals to be "screwed up"? The value of the Fed's target variables is changed frequently because the Fed has wide target zones. Are the goals ever completely reached by the Fed? How often do goals change? Goals like "conditions that will foster price stability and promote sustainable growth in output" are so vague that it is hard to evaluate the job the Fed is doing un less something dramatic happens to the economy. 7 years of continuous economic growth is an indication that the Fed is, at least, not screwing things up. The goals, because of their vagueness, are rarely officially changed. Some History When the Fed was created, changing the discount rate was the primary tool of monetary policy. The guiding principle for the conduct of monetary policy was the real bills doctrine. Banks should make short-term, self-liquidating loans to support current production and services. These loans finance goods and services which will be sold. These loans are called real bills. The real
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Fed - Fed's Policy Procedures From Last Time Has the Fed...

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