When Volker chose to set interest rates at a very high level, he did so without any problem. When Bernanke just decided to lower short term rates he did so without any problem.
Yes, the Fed can raise or lower the Fed Funds rate.
Can they both set the interest rate and say M2
No, they cannot control the price and quantity of money at the same time.
173 posted on 04/30/2008 4:04:47 PM PDT by Toddsterpatriot
(Why are doom and gloomers, union members and liberals so bad at math?)