(See related pages)
After reading this chapter you should be able to
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Understand the role of the Federal Reserve of the United States. |
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Recognize that macroeconomic stability is the Fed's primary goal, but controlling inflation has become the way it measures its success. |
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Know the tools of monetary policy, understand how they work, and be able to apply that knowledge to an aggregate supply–aggregate demand model. |
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See how the recent history of monetary policy has shaped the Federal Reserve's current emphasis on inflation. |
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Understand that the wisdom of the emphasis on inflation has been the subject of substantial debate among economists. |