The Money Farm Team

How Might The Federal Government Respond To A Recession?

Congress has given the Federal Reserve a dual duty to preserve full employment and price stability in the US economy. During recessions, the Fed uses a variety of monetary policy tools to assist lower unemployment and re-inflate prices. Open market asset purchases, reserve regulation, discount lending, and forward guidance to control market expectations are some

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Why Is Inflation So Low?

Wages rise when the labor market is tight. Furthermore, because salaries account for a large portion of production expenses, increased wages are likely to raise inflation. Low unemployment should imply increased inflation as a result of these simple correlations. High unemployment, on the other hand, should lower wages and slow inflation. Why, therefore, has inflation

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