644-Q8

a.In a column in the Wall Street Journal, two economists at the Council on Foreign Relations argue: Simply put, the Fed must choose between managing the level of reserves and managing rates. It cannot do both". Do you agree? Briefly explain.

b.A former Federal Reserve official argued that at the Fed "the objectives of prices stability (i.e. inflation) and low long-term interest rate are essentially the same objective." Briefly explain how these two move together.