How does transparency play a role in consumer confidence

Reference no: EM131926040

Question: 1. The Fed has become significantly more transparent in the past few decades than when it was first created. Why have they become more transparent? How does transparency play a role in consumer confidence? Why is consumer confidence important when considering monetary policy? List two potential pros and two potential cons of increased transparency in the Fed.

2. Describe the main goals of the Federal Reserve. What happens when these goals come into conflict? Explain how the Fed would decide if lower inflation is more important than lower unemployment? Would this decision be handled differently in the U.S. than in the European Union? Why? Explain how the fed would attempt to increase inflation if they believed it was too far below their target of 2%.

Reference no: EM131926040

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