07 Jul Reply to post 150 wordsYes, I I think the Federal Reserve Sy
Reply to post 150 wordsYes, I I think the Federal Reserve System should control the nations money supply as they allow the stable expansions of the economy. They also provide a supply of money and credit during economically slow periods. In a nutshell, they allow the economy to take it course until there interjection is required at extreme ends of the scale. The Feds use the following tools to maintain a healthy balance in the economy: reserve equipment, discount rate and open market operations. When the economy is experiencing a downturn, the Feds provide a cash supply to kick start growth e.g. GFC 2008. On the top end when inflation is posing a risk, the supply is shrunk to contract.Reference:How the Federal Reserve Manages Money Supplywww.investopedia.com/art (Links to an external site.)Links to an external site.icles/08/fight-recession
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