eral Reserve and several other parameters of the monetary and credit relations. In turn, current operations manager on the open market is taking the necessary purchases or sales of securities of the federal government needed to achieve the objectives of the policy before it. [See 5 p. 29]
2010 Members of the FOMC
o Ben S. Bernanke, Board of Governors, ChairmanWilliam C. Dudley, New York, Vice ChairmanJames Bullard, St. LouisElizabeth A. Duke, Board of GovernorsThomas M. Hoenig, Kansas CitySandra Pianalto, ClevelandSarah Bloom Raskin, Board of GovernorsEric S. Rosengren, BostonDaniel K. Tarullo, Board of GovernorsKevin M. Warsh, Board of GovernorsJanet L. Yellen, Board of Governors
Alternate MembersCharles L. Evans, ChicagoRichard W. Fisher, DallasNarayana Kocherlakota, MinneapolisCharles I. Plosser, PhiladelphiaChristine M. Cumming, First Vice President, New York [see 16 p.29]
2. Monetary policy of Federal Reserve System
.1 Monetary Policy and the Economy
main objectives of monetary authorities in the US. S. monetary policy has two main objectives:
) stimulating production and employment
) maintaining a "stable" prices. These goals are listed in the adopted in 1977 amendments to the Federal Reserve System. the economy develops in a cyclical output and employment levels are regularly above or below the projected long-term trend. Despite the fact that monetary policy can not affect the production or employment in the long run, in the short term it under her power. For example, when the demand for industrial products is reduced and there comes a recession, the Fed can stimulate economic growth - of course, time - and help the economy closer to the long-term levels of production by lowering interest rates. Therefore, in the short term, the Fed and other central banks are taking measures to stabilize the economy, resulting in levels of production and employment in relative conformity with the projected long-term economic growth. question arises: if the Fed can stimulate the economy out of recession, why it cannot stimulate the economy all the time? In fact, successive attempts to accelerate economic growth, placing them beyond the long-term levels, put pressure on the factors limiting the performance, which will result in more and higher inflation, not accompanied by long-term decline in the unemployment rate or an increase in output. In other words, the policy of continuing to support economic growth not only bring the country long-term benefits, but also to make people pay for high inflation. pressure has a negative impact on the economy because, on the one hand, promotes the growth of interest rates on long...
