Federal Reserve's Role In The Economy
The Federal Reserve's role in the economy can be expressed by any of the three following metaphors: the Fed as a mechanic, a warrior, or a fall guy. Interestingly enough, the Fed can be all three at same instance. It really depends on what is happening in the economy at the time, what the Fed's role is at the moment, and the observer's perspective. Let's take a closer look at each metaphor and the circumstances under which it applies.
A mechanic is someone that repairs and maintains machines. This section describes the Federal Reserve's (Fed) role as a mechanic who repairs and maintains the nation's economy "machine". Any auto mechanic will tell you that maintenance as well as major service is necessary to keep an automobile running smoothly and efficiently. There may still be unexpected breakdowns, but the repairs are usually less costly if regular maintenance is done. The same is true for our economy.
The Federal Reserve System consists of 12 Federal Reserve banks......
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Approximate Word Count: 2984
Approximate Pages: 12 (250 words per double-spaced page)
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