Monetary Policy Memo

427 Words2 Pages
To: Denis McDonough, White House Chief of Staff From: Special Task Force of the Council of Economic Advisors We have reviewed all of the information you have provided us, and we have come to a decision on what policy should be put in place. The numbers are very high so the action should be placed immediately. The normal rates should be 2-3% for inflation and real GDP and 5% for unemployment. In this particular situation unemployment is 12.5%, GDP is 13%, and inflation is 9%. With this information we had to decide what policy we want to put in action, either monetary, or fiscal. With the monetary policy, we would only be changing the inflation rate. There are three ways in which we can change the rate. These would be open market operations,
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