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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.
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Some economists are even anxious that the US's may have lessened their love of property ownership. It looks that boom years had never occurred. Paul Dales, US economist at Capital Economics says that "You would have to go back to the Great Depression to find anything similar.
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