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?

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Definitions:

Nonlabor Income

Income received that does not originate from employment or wages, such as dividends, interest, and rental income.

Wage Rate

The amount of money paid to an employee per unit of time, often hourly or annually.

Utility Function

A representation in economics that shows the relationship between consumption bundles and the level of satisfaction or utility they provide to an individual.

Leisure

Free time when individuals are not engaged in work or essential activities, often used for relaxation, recreation, or other personal interests.