Why might eliminating the Fed's independence lead to a more pronounced political business cycle?

-

Why might eliminating the Fed's independence lead to a more pronounced political business cycle?



Answer: Eliminating the Fed's independence might make it more shortsighted and subject to political influence. Thus, when political gains could be achieved by expansionary policy before an election, the Fed might be more likely to engage in this activity, As a result more pronounced political business cycles might result.

Comments

Post a Comment

Popular posts from this blog

Agile Method Advantages and Disadvantages

-
Agile Method Advantages and Disadvantages Agile, or adaptive, methods are very flexible and efficient in dealing with change. They are popular because they stress team interaction and reflect a set of community-based values. Also, frequent deliverables constantly validate the project and reduce risk. However, some potential problems exist. For example, team members need a high level of technical and interpersonal skills. Also, a lack of structure and documentation can introduce risk factors. Finally, the overall project may be subject to significant change in scope as user requirements continue to evolve during the project.
Read more

Summarize effective communication strategies in organizational hierarchies, and review the role and relevance of the organizational grapevine

-
Summarize effective communication strategies in organizational hierarchies, and review the role and relevance of the organizational grapevine Some companies try to encourage communication through workspace design, as well as through Web-based communication channels. some executives also meet directly with employees, such as through management by walking around (MBWA) and town hall meetings, to facilitate communication across the organization. In any organization, employees rely on the grapevine, particularly during times of uncertainty. The grapevine is an unstructured and informal network founded on social relationships rather than organizational charts or job descriptions. Although early research identified several unique features of the grapevine, some of these features may be changing as the Internet plays an increasing role in grapevine communication.
Read more

Examine the age-structure diagrams of Sweden and Kenya below, and answer the following questions. Compare and contrast the two age structure diagrams in terms of two population dynamics - birth rate and death rate.

-
Examine the age-structure diagrams of Sweden and Kenya below, and answer the following questions.   Compare and contrast the two age structure diagrams in terms of two population dynamics - birth rate and death rate. Restatement: Given two age-structure diagram, Sweden and Kenya for 2000, compare and contrast the diagram in terms of population dynamics.  Age structure diagrams are basically divided into three major age categories: 1) Prereproduction (0-15 years old) 2) Reproductive (16-45 years old) 3) Postreproduction (46 years old-death) Birth Rate Sweden  1) Population has nearly equal proportions of pre-reproductive and reproductive individuals. 2) Little growth over a long period of time will produce a population with about equal numbers of people in all age groups. 3) Children not required or necessary to support parents.  4) Availability and acceptance of birth control. Kenya 1) Population had pyramid-shaped age structu...
Read more