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ʺAs the Fed Chases Inflation, Critics Shout, ʹFaster!ʹ

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ʺAs the Fed Chases Inflation, Critics Shout, ʹFaster!ʹ
ʺFor weeks, the Fed has broadcast its intention to raise interest rates glacially.ʺ The Fed was moving slowly, according to an economist because ʺ... the declining price of oil, economic fundamentals, including productivity and global competition, will keep inflation in check.ʺ The Fed, recognizing that the economy was improving stated it planned to ʺrespond to changes in economic prospects as needed to fulfill its obligation to maintain price stability.ʺ Other economists disagree with the Fedʹs restrained policy as a ʺmistakeʺ
Www.nytimes, 7/1/2004
The Fedʹs policy will the quantity of money and the supply of loanable funds.


Definitions:

Intermediate Future

A period that lies between the near future and the distant future, often used in the context of forecasting or planning over a few years to a decade.

Perishable Inventory

Items or goods that have a limited lifespan or shelf life, requiring careful inventory management to minimize losses due to spoilage or obsolescence.

Yield Management

A pricing strategy that uses understanding of consumer behavior and market demand to maximize revenue, often used in the airline and hotel industries.

Variable Costs

Expenses that change in proportion to the level of production or sales activity, such as materials and direct labor.

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