The Fed's Dual Mandate: Balancing Inflation and Employment

This chapter explores the Federal Reserve's dual mandate to achieve stable inflation and maximum employment, contrasting it with the European Central Bank's singular focus on inflation. It delves into the complexities of economic policy, discussing the implications of maintaining a target inflation rate and the necessity of balancing both goals. It also examines the historical evolution of the Fed's strategies, including notable measures taken during the Great Recession and the interplay of differing economic philosophies.