Public Policy Brief Highlights
نویسنده
چکیده
The Federal Reserve currently has two legislated goals: price stability and full employment. The original Federal Reserve Act of 1913 contained no macroeconomic goals. Rather it instructed the Fed to prevent financial panics and bank runs by providing loans to the banking system. In the aftermath of the Great Depression, the Employment Act of 1946 required the Fed to pursue "conditions under which there will be afforded useful employment opportunities . . . for those able, willing, and seeking to work, and to promote maximum employment, production, and purchasing power." By the 1970s the term maximum employment was understood to mean not zero percent unemployment, but the level of unemployment that arises in a healthy economy as employers and employees seek good matches. In 1978, the Full Employment and Balanced Growth Act required the federal government to "promote full employment . . . and reasonable price stability."1
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تاریخ انتشار 2003