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(The Federal Reserve Board, 2006) Monetary policy is one of the tools that the government uses to influence the economy in order to achieve economic stability. The Fed increases or decreases the money supply to influence inflation, unemployment, interest rates and economic growth. (Financial Pipeline, 2006)
State of the Economy
According to the July 2006 Monetary Policy Report to the Congress the economy is currently in a state of transition. The economy has been relatively stable over the past few years even with some of the recent disasters that impacted it such as September 11 and Hurricane Katrina...
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