Question
need this answer!! While there is a strong consensus among economists in favor of central bank independence, political support seems to be waning. What factors
need this answer!!
While there is a strong consensus among economists in favor of central bank independence, political support seems to be waning. What factors may have contributed to the rise in the political threat to the Federal Reserve's independence?
multiple choice 1
The degree by which the Fed cooperated with the Treasury to restore financial stability during the crisis could be interpreted as compromising the Feds independence or, alternatively, as being consistent with the Fed independently pursuing its goals.
During the financial crisis, the Fed did not change its behavior in any way and so there was no potential for its independence to be compromised.
In light of the financial crisis, there have been no calls for legislation to bring about increased oversight of the Fed and so no potential for its independence to be compromised.
During the financial crisis, the Fed played no role in the bailout of AIG and so there was no potential for its independence to be compromised.
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