Government Issues

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2. Governmental leaders are very concerned about economic recession. Therefore, it can be helpful for a citizen to understand what the response to economic recession can be in many instances. Through this article you are provided some basic information about the response to economic recession that you can expect.
The governmental agency in the United States that perhaps is most responsible for the response to economic recession is the Federal Reserve Bank. The Federal Reserve is the central bank for the United States of America. The Federal Reserve is responsible for the monetary policy of the United States. The Federal Reserve is charged with making apolitical decisions affecting the monetary policy of the United States.
Because of its role in overseeing monetary policy, the Federal Reserve by definition is highly involved in a response to recession. In regard to a response to recessions, the Federal Reserve has an impact in one of two (and oftentimes both) ways. First, it is the Federal Reserve (acting as a central bank) that actually determines how much money is in circulation. The amount of money in circulation has a direct effect on inflation. Generally speaking, if "too much" money is in circulation, the value of the dollar (in this case) drops. (In a very basic way, this concept supports the old adage of "too much of a good thing ... ain't.")
Second, the Federal Reserve is also charged with the responsibility of setting certain interest rates - interest rates which trickle down through the system and ultimately effect what a consumer will pay for a home loan, car loan or other type of personal loan.
With these two areas in which the Federal Reserve has absolute control, that agency has the ability to undertake the most important and relevant response to economic recession. In the end, while the efforts of the President (in the way of the $600 economic stimulus package) of the Congress simply do not pose the effective response to economic... [continues]

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