Why is it more difficult for the Fed to control the money supply today than it was fifty years ago?

What will be an ideal response?


The international financial markets are more global today. If the Fed decides to reduce the money supply, people can obtain dollars in international markets, offsetting the actions of the Fed. People can borrow in other currencies if they want more liquidity. The globalization of international money markets makes it more difficult for the Fed to control the rate of growth of the money supply in the United States.

Economics

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Consider the figure? 4B-2. If the price is? $20, find the area that represents producer surplus.

A. Upper A plus Upper B. B. Upper C plus Upper D. C. Upper A plus Upper B plus Upper C. D. Upper F plus Upper E plus Upper D.

Economics

Economists at which administrative department analyze data on workers and those looking for work to help formulate labor-market policies?

Economics

The concept of comparative advantage leads to the conclusion that:

A) beneficial trade takes place if one country can produce everything more efficiently than another country. B) trade will benefit the two countries if the relative costs of production differ in the two countries. C) benefits from trade are possible only if all tariffs are eliminated. D) everyone benefits from increased trade both in the short run and the long run.

Economics

The formula for the elasticity of supply is the percentage change in quantity supplied divided by the percentage change in price.

Answer the following statement true (T) or false (F)

Economics