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Title: One of the aspects of Neoliberalism in the US was that the Central Bank Post by: Rade An on Mar 23, 2022 One of the aspects of Neoliberalism in the US was that the Central Bank, The Federal Reserve, stopped using monetary policy to create full employment. Explain how that helped create low and stable inflation in the US during Neoliberalism.
Title: Re: One of the aspects of Neoliberalism in the US was that the Central Bank Post by: davids241 on Mar 23, 2022 If the economy is at full employment level, and there is a fear of inflation then the federal reserve Bank would increase the interest rate due to which money supply decreases and if the money supply decrease then the investment also decreases and purchasing power decreases and so aggregate demand also decreases due to which price is decrease and inflation could be controlled.
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