summarize the debate related to the amount of discretion that the Federal
Reserve has in setting monetary policy. To help with the task, you should watch the panel called
“ROUNDTABLE DISCUSSION: SHOULD THE FED BE SUBJECT TO A MONETARY
RULE?” that was part of the 2018 Annual Monetary Conference hosted by the Cato Institute.
You can find the vide during the 4:00-500PM session here:
https://www.cato.org/events/36th-annual-monetary-conference
(1) In your opinion, is the current level of discretion at the Fed appropriate?
(2) If the Fed becomes more subject to political pressure, would you change your answer to (1)?
Sample Solution