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Macro - Essay Example

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I chose the article because it addresses the interplay between several macro economic factors and players. It also offers a macroeconomic analysis of the current monetary situation of the…
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Macro
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Macro

Download file to see previous pages... The popular opinion among monetary economists is that the central banks should focus on inflation control as the basis for the creation of jobs as opposed to the reverse method of spurring job growth by decreasing borrowing costs. The article states the case for a dual mandate for banks in the control of inflation and the management of the unemployment levels.
The article discusses two major underlying macroeconomic topics, inflation and unemployment. I agree with the popular opinion that the central banks should focus on controlling inflation as the means to controlling inflation as opposed to lowering the borrowing costs as a method of spurring employment and curbing inflation. The Federal Reserve does not have control over congress spending and as such it can only manage the inflationary effects on employment over the unemployment effect on inflation. However the Federal Reserve can also engage in small scale initiatives to reduce the level of unemployment.
Appelbaum, Binyami. ‘Fed Responds to a Grim Reality’. New York Times. September 14, 2012. Web. November 7, 2012. ...Download file to see next pagesRead More
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