Ben Bernanke's Fed

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How the World Works

A Brief Course inMacroeconomics

Getting into the head of the Fed requires a basic primer on how the economy and monetary policy works. Macroeconomics is often presented as a bewildering array of competing models, and certainly there is plenty of disagreement within the profession. Nonetheless, a relatively simple framework underlies much of the discussion at central banks today. Central to this framework is the relationship between growth and inflation.

THE BULWARK

Central banking essentially involves a trade-off between promoting low and stable inflation and low and stable unemployment. By law, the Federal Reserve has ...