Google Answers: Should the Federal Reserve use stocks for monetary policy?

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Q: Should the Federal Reserve use stocks for monetary policy? ( No Answer, 1 Comment )

Question

Subject: Should the Federal Reserve use stocks for monetary policy?
Category: Business and Money > Economics
Asked by: mspray-ga
List Price: $2.00

Posted: 19 Apr 2004 16:23 PDT
Expires: 19 May 2004 16:23 PDT
Question ID: 332768

In principle, could the Federal Reserve conduct monetary policy
through the purchase and sale of stocks on the New York Stock
Exchange? Do you see any possible drawbacks to such a policy?

Answer

There is no answer at this time.

Comments

Subject: Re: Should the Federal Reserve use stocks for monetary policy?
From: easterangel-ga on 19 Apr 2004 17:05 PDT

One very big problem with this will be stocks are very volatile and
are dependent too much on the performance of one single company.

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