Tyler Coughlan, Chapter 10, Question #6

A point that grabbed my attention was how the federal reserve has to help the rate of economic growth that doesn't go to fast or too slow. It is a hard job to attain that balance especially with other factors in play. One point was that the economy has a lag and the fed can't see what it's Putin place move into action immediately. That can be trouble because someone might want to increase economic growth more because they don't see economic growth immediately but that could hurt in the long run. Also monetary and fiscal policy create an affect on the economy solely by themselves. In the book Wheelan uses the analogy of the accelerator and the brake in how congress can be applying the accelerator and the fed is applying the brake and vice versa. That causes problems if they aren't in cooperation. I saw this as a interesting point because it makes the job of the people at the federal reserve even harder.