	AllExperts > Economics
	Search

Volunteer
Answers to thousands of questions

Home · More Economics Questions · Answer Library

· Encyclopedia ·

Economics - the federal reserve 1979

Expert: Docs99 - 8/1/2009

Question
Why did the fed switch it's focus from interest rates, such as the federal funds rate, to target the volume of bank reserves consistant with desired growth rates on monetary aggregates ?

Answer
http://www.historycommons.org/context.jsp?item=USFedResTtgMonSup
Hope this helps. It is really complicated. The Carter years saw inflation and double digit nominal interest rates. The banks were overextending themselves overseas. Volker was the strong hand on the Fed. Hope this helps. Thanks for your query.

Add to this Answer Ask a Question