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Hubbard’s argument about the Federal Reserve controlling Federal funds rates
Question: Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Summary:The question whether the Federal Reserve being able to control fund rates by making changes in the interest rates is discussed in the answer.
Word count: 133
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