The Federal Reserve Didn't Always Communicate Its Actions to the Public

question 19

Essay

The Federal Reserve didn't always communicate its actions to the public like it does today. As recently as the mid-1990s, secrecy ruled. Why do you think the Fed and most central banks now are more public about their actions and the reasons for them?

---

Definitions:

Dividends

Dividends are a portion of a company's earnings that are paid to shareholders, typically on a quarterly basis, as a reward for investing in the company's equity.

Agency Relationships

Refers to the connection between principals (such as shareholders) and agents (such as company executives), where agents are expected to act in the best interests of principals.

Owner/Managers

Individuals who both own and actively manage a company, blending ownership and operational responsibilities.

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership and possibly rights to dividends and voting in company matters.