2006-06-06 04:23:14 · 4 answers · asked by schillinfl2 3 in Business & Finance ➔ Other - Business & Finance
Actually, it is you.
In the past, business cycles were short and the economy changed quickly. Since the Fed started taking action, booms have lasted several years and recessions have been relatively short. The new Fed Chairman does not act alone. The board is made up of several economists, and there is continuity when the Chairman changes. The past 20 years have shown that their actions do help smooth the peaks and valleys of the economy.
Someone else suggested limiting the money supply instead of targeting interest rates. This was tried in the late 1970s and early 1980s (it is referred to as "the Fed Experiment"). It was a complete failure. The Fed can either have an effect on the supply of money or interest rates -- not both. Controlling the money supply allows rates to go crazy. During the Fed experiment, T-Bill rates jumped up to 18%. No one wants that.
The current problems are not due to the new chairman. They are because a war in the Middle East has caused oil prices to sky rocket.
2006-06-06 05:18:06 · answer #1 · answered by Ranto 7 · 1⤊ 0⤋
No, he is following the same trends that Greenspan followed. It is hard to step into a job that the previous person had held for so long and done so much with. That's like being the follow up act to Miles Davis. Not many could be better.
2006-06-06 04:27:12 · answer #2 · answered by Anonymous · 0⤊ 0⤋
More importantly why do these idiots try and stop inflation by raising interest rates? Why not slow down the printing of money?
2006-06-06 04:35:55 · answer #3 · answered by Mister_fin 3 · 0⤊ 0⤋
AHH MARK TARANTO... THE WAR HAS BEEN GOING FOR SOME TIME THE NEW CHAIRMEN HAS BEEN AROUND FOR WHAT 1- 1 1/2 MTHS.
GET THE PICTURE DUMBASS
OIL IS THE LEAST OF OUR PROBLEMS.. OUR DOLLAR IS THE ISSUE CHECK THAT OUR WEAKASS DOLLAR AND BER-NAN-DICK IS IN CHARGE
2006-06-08 10:30:22 · answer #4 · answered by JDINFLA 3 · 0⤊ 0⤋