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For a More Open Fed The Federal Reserve is working to improve its communication regarding monetary policy.
When the initial rate cuts were made by the Federal Open Market Committee, no one was really sure what the Fed's position regarding monetary policy was.
Recently, over 400 economists, academics and former government officials signed the attached petition supporting the independence of the Federal Reserve regarding monetary policy.
And to reinforce this, just witness the reaction to the announcement out of China earlier today regarding monetary policy changes there.
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As a consequence of Keynes's theory, economists came to regard monetary policy as more or less ineffective in controlling the volume of economic activity.
Since World War II most countries have regarded monetary policy as a critical instrument (the other biggies being government spending and taxation) in regulating the economy.
The coin would not affect monetary policy.
(See "Roche Not Ruffled By Economic Woes") Regarding wider monetary policy, there does not seem to be any need for drastic action just yet, according to the Swiss Economic Institute.
The revised statement of risks "could strengthen expectations regarding future monetary policy easing to an extent that was difficult to predict and could generate sizable reaction in financial markets," policy makers agreed in December.
Lee Hoskins, a former president of the Cleveland Fed, writes at Forbes and (aided by Robert P. Murphy of the Pacific Research Institute) insists that "further loosening at this time would be a mistake, and would also send an alarming signal regarding future monetary policy".
Moreover, we are still in a sweet spot with regards to monetary policy.
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