宏观经济学原理与应用（第二版）教学配套课件罗伯特.E.霍尔inflation_monetary_policy.pdfVIP

Inflation and Monetary Policy Slides by: John Pamela Hall ECONOMICS: Principles and Applications 3e HALL LIEBERMAN © 2005 Thomson Business and Professional Publishing The Objectives of Monetary Policy • Fed was first established in 1913 – Chief responsibility was to ensure stability of banking system • Fed’s objective in 1950s and 1960s changed to keeping interest rate low and stable – In 1970s, Fed’s objectives shifted once again – As stated in Federal Reserve Banking Act of 1978, which is still in force • Fed is now responsible for achieving a low, stable rate of inflation, and full employment of labor force 2 Low, Stable Inflation • When inflation rate is high, society uses up resources coping with it – Resources that could have been used to produce goods and services • In addition to keeping inflation rate low, Fed tries to keep it stable from year to year • Fed, as a public agency, chooses its policies with costs of inflation in mind – Fed has another concern • Inflation is very unpopular with the public • A Fed chairman who delivers low rates of inflation is seen as popular and competent – While one who tolerates high inflation goes down in history as a failure 3 Full Employment • “Full employment” means that unemployment is at normal levels • Different types of unemployment – Frictional unemployment is part of normal working of labor market – While structural unemployment is a serious social problem • Best solved with microeconomic policies – Such as job-training programs or improved