Question

1. Has the Federal Reserve done a good job accomplishing its main purpose since its inception in 1913? Defend your position with a compelling economic argument.
2. Should we end or keep the Federal Reserve? Defend your position with a compelling economic argument

Answer 1

SOLUTION :

Some argument for defend of Federal Reserve :

1. Supervising and regulating banks and other important financial institutions to ensure the safety and soundness of the nation's banking and financial system and to protect the credit rights of consumers.

2. Maintaining the stability of the financial system and containing systemic risk that may arise in financial markets.

3.At a time when much of the American system of government, particularly the relationship between Congress and the executive branch, is characterized by dysfunction and partisan warfare, the Fed is a shining exception.

4. The great irony in all this is that the Fed is already one of the most transparent arms of government.

5. As a quasi-independent institution that is shielded from day-to-day political pressures, it can concentrate on the actual business of governing, and on preventing economic calamities. Its existence in this form, which Congressional Republicans have been seeking to undermine, provides an invaluable backstop for the U.S.

6. Providing financial services to depository institutions, the U.S. government, and foreign official institutions, including playing a major role in operating the nation's payments system.

.7. Conducting the nation's monetary policy by influencing the monetary and credit conditions in the economy in pursuit of maximum employment, stable prices, and moderate long-term interest rates.