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What is the point of these article? Explain in your own word. Limit Independence On both the political right, what in the United States we
What is the point of these article? Explain in your own word.
Limit Independence On both the political right, what in the United States we call conservatives, and the political left, referred to as liberals in the United States, there are calls to limit the independence of central banks. On the right in the United States we hear demands to "audit the Fed!" especially from libertarians, because they see the Federal Reserve as a secret organization that represents an extension of government intervention into markets and thus people's lives. When proposing legislation to "audit the Fed and thus reduce the central bank's independence, Senator Rand Paul of Kentucky stated in 2013: "The Fed's operations under a cloak of secrecy have gone on too long and the American people have a right to know what the Federal Reserve is doing with our nation's money supply ... audit the Fed has significant bipartisan support in Congress and across the country and the time to act on this is now." In 2014 Senator Paul threatened to hold up nominees to the Federal Reserve Board of Governors unless the US Senate voted to audit the Fed. While the Federal Reserve is already audited by independent auditing firms, the reported purpose of auditing the Fed is to give Congress more say over the monetary policy decisions that the Fed makes. However, not all conservatives agree with Paul's call to audit the Fed and thus limit its independence. Another conservative complaint about the Fed, and thus the need to limit the Fed's indepen- dence, is that the Fed has gone soft on fighting inflation, accusing it of "debasing the currency During the 2012 presidential campaign, much was made about the Republican vice presidential nominee Paul Ryan and his dislike of the Fed's dual mandate. In congressional hearings in 2011 Ryan told then Fed Chair Ben Bernanke, There is nothing more insidious that a country can do to its citizens than debase its currency." Thus many conservatives want Congress to be more involved in setting monetary policy. This increased congressional control over monetary policy presumably will be used to increase the level of transparency of monetary policy and ensure a more contractionary monetary policy is put in place to control inflation. It is not only those on the right, or conservatives, however, who want to limit the Fed's inde- pendence. Vermont's Independent US senator, Bernard "Bernie Sanders, who describes himself as a democratic socialist, has long been a vocal critic of the Fed. In 2010 Sanders attached an amendment to the Dodd-Frank financial market reform bill that directed the Government Accountability Office to conduct a study-what Sanders called an "audit of the Federal Reserve. When the report was released a year later, Sanders is reported as saying, The Federal Reserve must be reformed to serve the needs of working families, not just CEOs on Wall Street." This reform presumably would include greater congressional oversight of the Fed and the ability of Congress to alter monetary policyStep by Step Solution
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