Jacob Besser ch10 q6

The thing that I found most interesting about this chapter is how any decision that the fed makes can have a massive effect on not only the US economy but also on the worlds economy. If they decide to lower interest rates it can cause a butterfly effect all around the world raising demand and eventually causing inflation globally. Furthermore the economy after a certain period of time returns to its equilibrium as prices even back out to increased wages and demand will go back down as the cost of living goes up matching the interest decreases. Given that the fed has this much power on the global economy it seems to me that the public should have more of a say in who runs it.