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Economic Effects of Government Policy

ECONOMIC EFFECTS OF GOVERNMENT POLICY

This research explores the economic effects of government policies in the United States. As it is not feasible to consider in this paper the economic effects of all the myriad policies of government in the United States, the economic effects of such policies in three areas are considered. These areas are (1) policies of the Board of Governors of the Federal Reserve System, (2) the policies incorporated into the Americans With Disabilities Act, and (3) environmental protection policies.

Economic Effects of Policies Initiated by the Board of Governors of the Federal Reserve System

The policy mandate of the Board of governors of the Federal Reserve System includes the maintenance of maximum employment, economic stability, economic growth, stability in prices, and the seeking of moderate levels in long-term interest rates. Within the agency's policy mandate, the Board of Governors establishes specific goals. The emphasis placed on the various elements of the policy mandate by the Board assumes great importance to the nation in an economic context (Board of Governors, Federal Reserve System, 1996).

The President of the Federal Reserve Bank of Richmond in the mid-1980s, Robert Black, stated that "an excessive preoccupation with current conditions can lead to policy actions that destabilize the economy rather than stabilize it" (Black, 1984, p. 5). Black (1984) was promoting a long-range policy objective approach for the system, as opposed to the short-range perspective that had characterized the Board's policy-making activities in the early-1980s.

Black (1984) also held that the mandate for the system is far too broad to serve "as a practical guide to monetary policy" (p. 7). Black (1984) thought that the mandate should be narrowed significantly. Other observers have agreed that the mandate often seems to be self-defeating. Marvin Goodfriend (1981), also associated with the Federal...

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Economic Effects of Government Policy. (1969, December 31). In LotsofEssays.com. Retrieved 10:09, March 28, 2024, from https://www.lotsofessays.com/viewpaper/1693625.html