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Assignment help 647

1. Suppose the Fed were required to conduct monetary policy so as to hold the unemployment rate below 4%, the goal specified in the Humphrey-Hawkins Act. What implications would this have for the economy?

2. The statutes of the recently established European Central Bank (ECB) state that its primary objective is to maintain price stability. How does this charter differ from that of the Fed? What significance does it have for monetary policy?

3. Do you think the Fed should be given a clearer legislative mandate concerning macroeconomic goals? If so, what should it be?

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