Monday, April 13, 2015

Zach Newton, Chapter 10, Question 6

The most interesting part of this chapter to me was when Wheelan mentions that as the Federal Reserve attempts to keep the economy chugging along around the speed limit of 3%, Congress is trying to make the economy go faster. "The Fed may tap on the accelerator ever so slightly only to have Congress weigh it down with a brick." This struck me as a very inefficient way to "fix" the economy if one branch of government does something that the other branch of government has to reverse or dial back. I am surprised that they do not have a constant line wired between congress and the Federal Reserve so that they can always inform each other of the situation and what would be best to do.

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