If Inflation and Unemployment Are of Direct Concern to Fed

question 109

Essay

If inflation and unemployment are of direct concern to Fed officials,why do they make such a big issue about money growth and interest rates? Why don't they just target the unemployment rate and the inflation rate directly? Explain.

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Definitions:

Social Norms

The unwritten rules that dictate the acceptable behavior within a society or group.

Communication Systems

Systems that enable transfer of information between entities to facilitate comprehension and process coordination.

Norms

Shared beliefs or standards of behavior that are considered acceptable within a particular society or group.

Socially Acceptable

Refers to behaviors or actions that are generally considered appropriate, polite, or conforming to the norms and values of a society or community.