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The Federal Reserve pursues five specific objectives to reduce economic and financial system volatility. The purpose of a monetary policy framework is to: A provide
The Federal Reserve pursues five specific objectives to reduce economic and financial system volatility. The purpose of a monetary policy framework is to:
A | provide the Fed with a measure of goal flexibility without having to communicate policy changes to the public that could disrupt financial markets. | |
B | make it clear to the public the specific goals that the Fed is pursuing. | |
C | allow the Fed to operate in secret in order to pursue monetary policy objectives more effectively. | |
D | give the Congress an opportunity to alter monetary policy, but within limits. |
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