What if anything did the fed do wrong

Reference no: EM132127725

Question: The US economy did not have any increase in the core rate of inflation in 1999-2000 with the economy at full employment; instead, it had a stock market bubble. Many people subsequently held Alan Greenspan and the Fed responsible for the resulting crash. Yet monetary policy is supposed to control inflation, not stock prices. What if anything did the Fed do wrong, and doesn't it deserve credit for keeping inflation low and stable? Or was low inflation due to other factors, and not the direct result of Fed policy in the late 1990s?

Reference no: EM132127725

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