A politician is noted to have said that we really don't need to have the Federal Reserve do much other than to regulate banks. Larry (the politician) offers the rationale that the Government (Congress and the Treasury) already focus on ensuring full employment with economic growth. As such, the Fed can sit back, relax and just focus on tasks related to banking functions.

As an economics student, what questions might you have for Larry? What information might you whisper in his ear, to help him get his story straight?