POPA ReconThe Fed has a dual mandate policy, pushed by mainstream fin media on targeting inflation (stable prices) and maximum employment, a lesser…
The Fed has a dual mandate policy, pushed by mainstream fin media on targeting inflation (stable prices) and maximum employment, a lesser known 3rd mandate on promoting moderate long term interest rates. They have other minor (lesser talked about) mandates/policies on regulation, governance, frameworks on banking/financial markets and political independence. However, back in the 1970s and 1980s, the Bank of England had the mandate to target money supply aggregates. Recently, Warsh have made comments on changing the policy to targeting money supply aggregates, which is very interesting.
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