August 19, 2008
All of you Fed Challenge participants should take time to read the latest speech by Charles Evans, president of the Chicago Fed. It concludes with the following paragraph:
“The current economic landscape poses a three-front conflict for policymakers: sluggish economic conditions with depressed housing and auto markets, rising inflation risks with high oil and commodity prices, and financial distress that is restraining credit growth. To date, relatively accommodative monetary policy has taken out insurance against downside risks of disorderly financial adjustment turning into a severe economic downturn. But rising inflation risks at a time of economic weakness present some difficult challenges for policy. At this point many financial market liquidity problems are being addressed through our special lending facilities. These additional tools allow our policy actions with regard to the fed funds rate to focus on broader macroeconomic goals—these are our commitment to price stability and sustainable growth.”
As you prepare for the competition, your discussions have probably included many of the points president Evans makes above. And as you read the speech, I hope you realize how exciting and meaningful the study of macroeconomics is… It impacts all of our lives!
Posted by Wade at August 19, 2008 2:54 PM
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tks for the effort you put in here I appreciate it!
Posted by: MichaellaS at July 22, 2009 11:57 PM
Such a well written post.. Thnkx for sharing this post!
Posted by: Miscellaneous at August 28, 2010 8:15 AM
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