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Why do some of the Fed’s critics think the Fed should not engage in manipulating the nation’s money supply?

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Answered 2 years ago
Answered 2 years ago

The Federal Reserve is the key body in charge of regulating the money supply in a country's economy through the implementation of various monetary policies. The Fed's policies, on the other hand, have been criticized on many occasions. This is because, during periods of high inflation, the Fed increased the amount of circulating money in the economy, exacerbating the problem. It was also found that as the economy slowed, the Fed reduced the money supply, worsening the situation. To prevent such miscalculations, critics argue that the Fed should refrain from manipulating its money supply and instead raise the money supply at a set rate every year.

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