The Federal Reserve :: Essays Papers

The federal Reserve President Clinton institute Alan Greenspan, a well- cognise chairman of the Federal Reserve Board, to his fourth experimental condition as the chairman of the nations central bank. Alan Greenspan accepted the chance to lead the Federal Reserve Board for another four-year term beginning June of 2000. President Clinton praised Greenspan for starting signal a New Era, an era with high technologies and productivity to advance. He is expected to push the level of prosperity to a higher stage. Alan Greenspan is known as a man of his profession to realize the power and jar of new technologies for the 21st century. The Feds job of stabilizing output in the suddenly run and promoting price stability in the long run is do more than difficut by two main factors the long and variable lags in policy, and the uncertain influences of factors other than monetary policy on the economy. This raised an Copernican question, what problems be caused by other influen ces on the economy? Output, employment, and inflation are influenced not only by monetary policy, but also by such factors as our governments taxing and spending policies, and the introduction of new technologies and so forth As we step into the 21st century, the wide spreads of computer industries and advance technologies put on enhanced the productivity. When workers and capitals are more productive, the economy can expand more rapidly without creating inflationary pressure. U.S. today has experienced a capability blow up brought on by the utilization of computer and hi-tech developments. The issue of monetary policy maker is how much faster productivity is increasing and whether those augment are temporary or permanent. With all these uncertainties, the board has to know how and when Fed.s policies go forth affect the economy? Fed looks at a wide cooking stove of indicators of the future course of employment, output and inflation. Indicators induces the measure of money s upply, unemployment rate, real take rate, nominal and real GDP growth, etc With so much variation of possibilities, policymakers essentially have to rely on their own judgement about the directivity of these indictors. They based on these foreshadowing to formulate strategies to maintain the economy at its top condition. In order to have a desire execution on the economy, the Fed must take into account of the influence of these indication, each offset them or reinforce them as needed.