Author : E. Froedge Toma
Publisher : Springer Science & Business Media
ISBN 13 : 9400944322
Total Pages : 256 pages
Book Rating : 4.4/5 (9 download)
Book Synopsis Central Bankers, Bureaucratic Incentives, and Monetary Policy by : E. Froedge Toma
Download or read book Central Bankers, Bureaucratic Incentives, and Monetary Policy written by E. Froedge Toma and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 256 pages. Available in PDF, EPUB and Kindle. Book excerpt: By now it has become obvious that Federal Reserve actions have an immense impact on the functioning of our economy. As a result, a great deal of research has been done on the Fed and on monetary policy. Much of this work is normative; it tells us what the Fed should do. Positive work on the Fed has usually tried to elucidate particular Fed policies, and has not tried to present a theory of why the Fed behaves the way it does. The dominant theory of Fed behavior is that the Fed does what it believes to be best for the public welfare. This theory - usually left implicit - is so simple, and seemingly so obviously correct, that it has received widespread credence without extended discussion or tests. When thinking about govern ment in general many observers doubt that it nearly always acts in the public interest. However, they ascribe this unfortunate state of affairs mainly to political pressures. Since the Fed is relatively removed from such pressures, the public interest theory of government seems more applicable to it.