If you were the Federal Reserve chairman, which monetary policy would you advise the federal government to adopt? Explain why.

• Return to the classical gold standard
• A gold price targeting policy
• A monetary rule (i.e., increase the M2 money supply at a steady rate equal to the long-term real GDP growth rate, and allow interest rates to fluctuate without interference.
• Price inflation target, i.e., set a maximum price inflation target, based on the Consumer Price Index or another broad-based price index, of 2% or less.
• Taylor Rule
• Switch to a more stable banking system such as the kind found in Canada, Australia and New Zealand.
• Maintain the current U.S. system of targeting price inflation and unemployment by tightening or easy monetary tools.