long-term detrimental effects on the nation. If the economy is sluggish, unemployment rises, tax revenue decreases, and the government as well as the private sector suffers as a result. Having an economy which is growing at a moderate pace would seem to require close coordination between the Fed, the government and the private sector, but no formal coordination mechanism exists to accomplish this.
In considering where the American economy is headed over the next 12 months, it is important to remember that the economy is part of the American business environment as a whole. Because the Fed's current board of governors has demonstrated that it is uniquely concerned with the inflation rate, it is unlikely that the Fed will permit the rate of inflation will increase significantly over the next year. There is pressure to keep inflation down from the president, but Congress also needs to keep inflation in check if it is to continue to push its balanced budget strategy. So long as inf
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