Question

For this assignment, I just want you to write a short essay (1-2 paragraphs) about whether you

think the Federal Reserve (or any central bank should be independent of political control or not.

There are no right or wrong answers, just make sure that you reference some of the reasons

from lecture in your discussion. If you have reasons other than the ones from lecture I would

love to hear those as well.

Answer 1

Yes, Federal Reserve should be independent of all political controls as it's need. As for there own benefits sometimes political parties do manipulate the data provided to the Feb over which they use to formulate there plans and policies. Many of time they use to form high budget for the nation's welfare and for the new policies which can be done efficiently and effectively but due to political pressure they have to work accordingly.

but this is sometimes really gets harmful for the economy of the Nation which helps in the occurrence of high inflation or deflation in the economy which can lead to low GDP rate and suffering for the money supply.

as with out the political pressure and independence Fed can collect all the data on there own with out any manipulation by anyone and can analysis them by the help of there economics expects and make policies as per the need of the current situation of the nation and make changes year per year as per the need and development.

and by this Fed can be able to work without any interruption and the effects of there policies and plans implementation will go directly to the citizens of the nation and help them to grow together.