As the federal reserve utilize its special powers

Reference no: EM1332711

Goals of monetary policy are

The Federal Reserve has traditionally conducted open market operations through the purchase and sale of government bonds. In principle, could the Federal Reserve conduct monetary policy through the purchase and sale of stocks on the New York Stock Exchange? Do you see any possible drawbacks to such a policy? When the Federal Reserve uses its special powers to buy and sell government bonds, how does buying and selling government bonds affect the supply of money in the economy?

Reference no: EM1332711

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