Regularly update the "practical" information to bring you different views and values, thank you for your attention!
Some time ago, the policy shift of the Chairman of the US Federal Reserve System (Fed) Jerome Powell attracted widespread attention.
Earlier this month, Powell alsoInsist on "no interest rate cuts".but after the recent interest rate meeting, however, he wassaid the Fed will discuss interest rate cuts.
This 180-degree turn has raised questions about the Fed's independenceEspecially in the context of the 2024 U.S. ** general election,Was this change in policy influenced by political forces?
First, we must understand the importance of the Fed's independence for its policymaking.
The Federal Reserve acts as the first bank in the United StatesIts independence is key to ensuring that monetary policy is focused on controlling inflation and boosting employment.
In economic theory, the independence of banks can avoid the interference of monetary policy by short-term political interests, and help maintain the long-term stability and healthy development of the economy.
However,Powell's shift has raised doubts about whether the Fed is under political pressure.
Historically, monetary policy adjustments have often been influenced by fiscal policy, especially during important political periods, such as election years.
In this case,Banks are likely to face pressure from the government to adopt a more accommodative monetary policy in support of political objectives.
In addition, the theory of "policy game" in economics can also be used to explain this phenomenon.
In the policy game, different political and economic interest groups may try to influence the bank's decision-making in order to achieve their own goals.
In the process, the independence of the bank may be challenged.
Taken together, Powell's policy shift may reflect the tension between the Fed's independence and external political pressures.
While the Fed's independence should be preserved in theory, in practice it may be difficult to completely escape the influence of political forces.
In this case, we ask a question:Are banks facing challenges to independence in general across the globe?
This question actually reveals a key issue in current global economic governance.
In most countries, ** banks are entrusted with the responsibility of formulating and implementing monetary policy, while theyThe ability to resist external political pressure and maintain independence in the implementation of policies is crucial to the stability and development of the economies of all countries.
By studying and comparing the independence and policy effectiveness of banks in different countries, we can gain a deeper understanding of the complex relationship between monetary policy and political power.
What do you have to say about this?Feel free to leave your thoughts in the comment section!
Note: Original debut, plagiarism must be investigated to the end!
Talk about money every day