Monetary Policy and Its Effect on Macroeconomics Free Essay, Term Paper and Book Report
Monetary Policy and Its Effect on Macroeconomics
Monetary Policy and Its Effect on Macroeconomics
University of Phoenix
Monetary Policy and Its Effect on Macroeconomics
Responsibility for establishing monetary policy is in the hands of the Federal Open Market Committee (FOMC). The FOMC is made up of the seven Federal Reserve Board members along with five of the twelve Federal Reserve Bank chairmen. It is the job of the FOMC to meet throughout the year to analyze the current state of the US economy and prepare monetary policies in response. Some newspaper commentators have stated that the chairperson of the Federal Reserve Board (currently Alan Greenspan) is the second most powerful person in the United States, after the U.S. president. That is undoubtedly an exaggeration because the chair has only a single vote on the 7-person Federal Reserve Board and 12-person Federal Open Market Committee (Campbell, 2004).
Although a variety of methods for controlling monetary policy is available, the Federal Reserve typically engages in open-market......
Word Count: 1181
Page Count: 4.7 (250 words a page / double spaced)
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