Hubbard’s argument about the Federal Reserve controlling Federal funds rates

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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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