Why might eliminating the feds independence lead to a

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12. Why might eliminating the Fed’s independence lead to a more pronounced political business cycle? 14. “The independence of the Fed has meant that it takes the long view and not the short view.” Uncertain, although independence may help the Fed take the long view, because its personnel are not directly affected by the outcome of the next election, the Fed can still be influenced by political pressure. In addition, the lack of Fed accountability because of its independence may make the Fed more irresponsible. Thus it not absolutely clear that the Fed is more farsighted as a result of is independence. *15. The Fed promotes secrecy by not releasing the minutes of the FOMC meetings to Congress or the public immediately. The argument for not releasing the FOMC directives, immediately is that it keeps Congress off the Fed’s back, thus enabling the Fed to pursue an independent monetary policy that is less subject to inflation and political business cycles. The argument for releasing the directive immediately is that it would make the Fed more accountable.

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