Libertarian politicians and Austrian economists generally have a very negative view of central banks such as the Federal Reserve. Other economists generally view central banks as an effective means of encouraging economic growth. Please discuss the following questions:
- What are the key suggestions that have been made for "reforming" the Federal Reserve?
- Two key characteristics generally associated with effective central banks are independence and accountability. What are these characteristics and how might they conflict?
- What is the "dual mandate" and how does it create some of these conflicts?
- Based on your research, what is your view regarding the desirability of a central bank with control over the money supply?