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Author Yellen, L.
Source CiteSeerX
Content type Text
File Format PDF
Subject Domain (in DDC) Computer science, information & general works ♦ Data processing & computer science
Abstract A massive structural budget deficit threatens the long-term economic health of the United States. But the fiscal imbalance won’t necessarily fuel inflation as long as the Federal Reserve retains the independence to pursue its objectives of maximum sustainable employment and price stability. The following is adapted from a presentation made by the president and CEO of the Federal Reserve Bank of San Francisco to Town Hall Los Angeles on March 23, 2010. I’m very grateful to Town Hall Los Angeles for organizing this event. It gives me an opportunity to explain to you how I see the economy shaping up in the months ahead. I will also use the occasion to talk about several issues that are high on the public policy agenda now: federal budget deficits and the proper place of the Federal Reserve in our system of government. Specifically, I want to address a concern that I hear people express more and more often: that massive fiscal deficits could lead to high inflation. I will lay out my reasons for believing that such fears are misguided. To give you an executive summary, the U.S. economy has bounced back remarkably over the past year, but we still have a long way to go. At the end of 2008, the entire financial system was on life support, the housing market had collapsed, consumers and businesses were at the edge of panic, and the nightmare of a depression seemed like a real possibility. Just a little over a year later, the financial system has
Educational Role Student ♦ Teacher
Age Range above 22 year
Educational Use Research
Education Level UG and PG ♦ Career/Technical Study
Publisher Date 2010-01-01