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How can it be demonstrated that the Federal Reserve (1913) was far more politica

ID: 1127284 • Letter: H

Question

How can it be demonstrated that the Federal Reserve (1913) was far more political than it is now?

Why does effective Monetary Policy require that policy changes be unanticipated?

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Explanation / Answer

The Federal Reserve (1913) was far more political because it some of the political leaders have an active role to overseeing the monetary policy and for this the federal reserve in today's current scenario is more important than the previous one. Also now, it is in the full control as the chairman of federal reserve tells about the situation.

The Effective Monetary policy require that policy for changes be unanticipated because of they think that it should be easy to control and the various measures were taken so that it might admist the backdrop of rising the pricing level of the economy and helpful in achiving the economic growth.

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