04 Jun Question The Federal Government and the Federal Reserve Bank
Question
The Federal Government and the Federal Reserve Bank both use their respective policy tools to make “corrections” to the economy. As we learned, both entities are able to stimulate a sluggish economy, as well as “cool down” one that may be growing too quickly.
Please respond to all of the following prompts:
Which “side” are you on in terms of stabilization policy? Should the government and / or the Federal Reserve be actively involved in managing the economy? Why or why not?
Do you agree with using “automatic stabilizers?” Why or why not?
Do you think either political party is more inclined to favor using stabilization policy? (Be sure to support your opinion with facts obtained from outside sources. Include the exact URL for citation purposes in your post.)
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