Go to the website wwwfederalreservegovmonetary

Question

1. Stock market conditions serve as a leading economic indicator. If the U.S. economy is in a recession, what are the implications of this indicator? Why might this indicator be inaccurate?

2. Assume that the Fed adopts an inflation targeting strategy. Describe how the Fed's monetary policy would be affected by an abrupt 15 percent rise in oil prices in response to an oil shortage. Do you think an inflation targeting strategy would be more or less effective in this situation than a strategy of balancing inflation concerns with unemployment concerns? Explain.

3. Go to the website www.federalreserve.gov/monetary policy/fomc.htm to review the activities of the FOMC. Succinctly summarize the minutes of the last FOMC meeting. What did the FOMC discuss at that meeting? Did the FOMC make any changes in the current monetary policy? What is the FOMC's current monetary policy?

Answer 1

Answer the following stock exchange answers in an essay format using the APA guidelines. Q1. Stock market conditions serve up as a leading economic indicator. Whenever the U.S. economy is in recession, write the implications of indicator? Explain why might this indicator be imprecise? Q2. Suppose that the Fed adopts an inflation targeting policy. Illustrate how the Fed's monetary policy would be influenced by an abrupt 15 % increase in oil prices in response to the oil shortage. Do you believe an inflation targeting strategy would be more or less efficient in this condition as compare to strategy of balancing inflation concerns by means of unemployment concerns? Describe. Q3. Go to website www.federalreserve.gov/monetary policy/fomc.htm to assess the activities of the FOMC. Concisely sum up the minutes of last FOMC meeting. Illustrate what did the FOMC Illustrate at that meeting? Did FOMC make any changes in the present monetary policy? Determine the FOMC's present monetary policy?