美联储是否应该独立(英文稿)

The Fed plays the key role to control the global economy as central bank of America, so it is very important for it to make good decisions independently to deal with American even globe economic problems. However, its independence has been challenged recently, our group holds the belief that Fed should have more independences at a certain degree, so I wanna defend for it from different perspectives.

From economical perspectives: an independent central bank is burned into the DNA of most macroeconomists, because low inflation is essential for a healthy economy, and only a central bank independent of political influence can ensure low inflation. Moreover, many countries have recently adopted legislation that greatly strengthens the independences of their central bank.

From aspect of politics: many politicians, especially presidents like to cut interest rate through monetary policy when they come to elections. this is because i ↓→(I C X) ↑ →AD ↑→Real GDP ↑& inflation ↑(according to macroeconomics), but from the negative impacts of easy policy-higher inflation-lag behind positive effects-lower interest rates and stronger growth. If politicians ran the Fed, inflation would likely be a lot higher, the economy would be more unstable, and policy would tend to be particularly easy just before elections.

From the view of global, American economy is related to world economy closely. If American interest rate adjusts, other countries will follow it. What is more, dollars are worldwide money on international transaction. Thus, it is necessary for America even the world to keep the economy running rightly. Fed just plays the crucial role in this aspect with the good independence.

In addition, fed made a list of relative policies last year to solve unemployment rate such as easy monetary policies ,which allowed inflation rate to be 2% higher than the expected value.

In conclusion, Fed ’s independence is very essential at different aspects. If it lacks independence , it will be like Japanese “住专事件” that the bank in dazing province still carry out QE during bubble economy phase. It turned out Japanese economy ran down in the 10 years later because of the lack of balance system. So an appropriate independence is really better than lack of independence for Fed.

The below content is the part that I deleted at the requirement of group members.

More independence doesn’t mean complete independence.

First of all, I want to illustrate “more independence” is relative to socialism countries such as China and other countries which government account for major status. Secondly, Fed needs to report to Congress periodically and restricted by fed reserve law(联邦储备法）。Simultaneously, a lot of economists and academics have tried to judge the relative independence of the major central banks.

Apart from several criteria of the paper (refer to the one that Ms Fu gave)our group wants to put forward several proposals to boost Fed keep economy stable.

1. Fed should enhance itself transparency and accept supervising from society as a

condition to remain its independence, Because of criticism from people during financial crisis.

2.Fed should provide more information for outside in order to make them understand、

appraise 、accept and support decisions made by Fed. The benefits of this way are dual that it can not only promote modifications for its wrong policies, but also coordinate the relationship between fed and Congress to consolidate trust from each other and implement monetary policies rightly.