The US Monetary Policy In exploring monetary policy in the United States, it is essential to define what is meant by monetary policy. Monetary policy can be defined as the policy decisions and actions by the Federal Reserve System (Fed) that affect the banking system and money supply. This may seem vague, but by decisions and actions, we mean the goals, tools, and targets of the Fed. In the following paper, I will look at monetary policy, "under a microscope." The Fed itself will be looked at, regarding the components of the unique system. Then, the goals of monetary policy will be explained, followed by the ....

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