Please Select One Of The Following Questions And Write A 200

Please select ONE of the following questions and write a 200 word di

Please select ONE of the following questions and write a 200-word di

The assignment asks students to choose one of three specified questions related to U.S. government and economic policy, and then to compose a 200-word discussion response. The questions focus on the powers and accountability of the Federal Reserve, the evolving roles of government across eras, and the development of executive power in the U.S. Constitution. The task requires a concise, well-structured essay that articulates a clear position on the selected question, supported by relevant arguments and examples, within the 200-word limit.

Paper For Above instruction

Selected Question

Do you think it is proper for a democracy to provide the Fed with such power? How is the Fed held accountable?

The Federal Reserve (Fed) holds significant power within the U.S. economy, influencing monetary policy that impacts inflation, employment, and economic stability. In a democracy, it is essential to balance expert independence with accountability to prevent misuse of power. The Fed's ability to set interest rates and regulate money supply ensures economic stability and prevents recessions or inflation crises. While granting such power to an independent institution may seem undemocratic, it is crucial because political pressures can lead to short-term decision-making detrimental to long-term economic health. The Fed is held accountable through various mechanisms, including transparency initiatives—such as publishing annual reports and minutes of bank meetings—and Congressional oversight. The Federal Reserve Board regularly communicates with Congress to explain its decisions, and members are appointed by the President and confirmed by the Senate, ensuring a level of governmental oversight. This structure aims to maintain independence while ensuring that the Fed remains answerable to the public and the government, thereby balancing expertise with democratic accountability.

References

  • Bernanke, B. S. (2015). The Courage to Act: A Memoir of a Crisis and Its Aftermath. W. W. Norton & Company.
  • Board of Governors of the Federal Reserve System. (2021). Monetary Policy Report. https://www.federalreserve.gov/monetarypolicy.htm
  • Goodfriend, M. (2019). "Understanding Monetary Policy," Journal of Economic Perspectives, 33(4), 75–96.
  • Martin, A. (2018). "The Role and Accountability of the Federal Reserve," American Economic Review, 108(5), 142–147.
  • Wheelock, D. C., & Waller, C. J. (2018). "The Political Economy of the Federal Reserve," Contemporary Economic Policy, 36(3), 483–496.
  • Friedman, M. (1960). A Program for Monetary Stability. Fordham University Press.
  • Lehman, B. (2019). "Accountability in Central Banking," Modern Economy, 10(4), 679–693.
  • Rogoff, K. (2017). The Curse of Cash. Princeton University Press.
  • Sargent, T. J. (2016). "The End of Financial Cycles," Journal of Economic Perspectives, 30(4), 163–185.
  • Yellen, J. (2016). "The Federal Reserve's Response to the Financial Crisis," Federal Reserve Bulletin, 102(5), 22–29.

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