Changing the Federal Reserve’s Mandate: An Economic Analysis
http://www.fas.org/sgp/crs/misc/R41656.pdf
Examines the controversy over whether the Federal Reserve should retain its current three-fold statutory mandate to promote maximum employment, stable prices, and moderate long-term interest rates or narrow the mandate to price stability alone. Presents arguments for and against each approach, criticisms of the Fed’s approach in recent years, and implementation issues related to an inflation target. From the Congressional Research Service, posted by the Federation of American Scientists
