Greenspan and Friends

“Greenspan and Friends” On Tuesday, March 20th, 2001 The Federal Reserve Committee led by Alan Greenspan decided to lower the federal funds rate from five and half percent to five percent. The Federal Funds Rate is the rate at which banks loan each other money over night. The Federal Reserve meets eight Tuesdays a year to decide on important economic decisions. The Federal Government’s overall policy is to interact as little as possible with our …

…control inflation and not being able to identify when the country is in a recession could result in devastating economic impacts. For example, a depression is directly related to a recession. If inflation is not controlled it would led to an increase in unemployment rate. If the Federal Government did not step in and stop the bubble from bursting the economy would surely grind to a halt and fall into another Great Depression. ------------------------------------------------------------------------ **Bibliography**