Economic Prompts
Responses for prompts
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Question 1.
The independence of the US federal system is paramount for the US to maintain a healthy economic state. There are some reasons why there is a huge support for the independence of the Federal system. Firstly, there is a need to control inflation in the country, and the system might be open to political pressure when implementing some of the monetary policies. In many cases, the political pressure can make the US federal system pursue an excessive expansionary monetary policy which tends to reduce the rate of unemployment in the short-run, but creates inflation and high employment without a reduction in the rate of inflation in the long-term……………………..words 768