See an excerpt from a report prepared by Elizabeth Dunne Schmitt,
Associate Professor of Economics at SUNY (State University of New
York), Oswego campus:
"Chapter 14: Structure of Central Banks and the Federal Reserve System"
"Federal Reserve Independence: The Pros
Basically, the main argument for independence is the notion that
political goals are short-term and economic goals tend to be more long
term. While Congress might be tempted to use monetary policy to
maximize re-election, an independent Fed is free to pursue policy that
promotes policies that pursue long-term economic goals, even if they
are unpopular in the short-run. . . ."
"Federal Reserve Independence: The Cons
The basic argument here is that independence is undemocratic and makes
the Fed accountable to no one if they do a lousy job. Voters can get
rid of bad senators, but they are stuck with bad Fed governors. . . ."
"Federal Reserve Board of Governors" AND independent AND pros AND cons
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