Economists today tend to feel that, over a the long run, the policies of the Federal Reserve have had both positive and negative effects: Federal Reserve policy decisions have occasionally increased rather than decreased economic instability; minute adjustments of monetary instruments are not productive and may well be destabilizing; over time, Federal Reserve policies that slow down the growth of money supply will reduce the rate of inflation; and some national problems facing the U.S in the 1980's, such as an energy shortage, are supply-related issues that central banks are not equipped to resolve.

Nevertheless, in contrary to monetary policy, fiscal policy also determines a lot in an econo

A very expansion monetary policy may well lower short term interests rates by flooding the banks and financial markets with loan able funds and yet at the same time may actually raise longer term interests rates by prompting fears among lenders that inflation will soon be accelerating. Unfortunately, the medium and long term interest rates have more influence on the rate of the growth of the and on levels of unemployment than short term interest rates do, because major new investment spending like research and development for new products or the construction of whole new factories are long term projects that require long term financing, and they are much less likely to be undertaken if the long term interest rates costs are high than if they are low.

However, the style in which the book was written was very theoretical. The author was very straightforward by letting the reader know what the book was about and stated its main points. The author reveals his feelings by showing his concern about the problems that are bombarding monetary policy. He discuss certain things that prove to be influential in the model endogenous and outside of it exogenous. For example, the stock of money which was treated as an exogenous factor determined; by both the Keynesian and neoclassical economists but apparently for different reasons (Fisher 10). He argues that this is not a wise position to take. According to Fisher, the Keynesian view that "money does not matter" justifies a concentration on other issues such as investments.

Some common words found in the essay are:
Fisher Keynesian, Federal Reserve, Role Federal, monetary policy, Fisher Overall, term rates, federal reserve, short term, , monetary policy makers, policy makers, book written, medium term, short term rates, medium term rates, money supply, book chose, term loans, policies federal reserve,
Approximate Word count = 1220
Approximate Pages = 5 (250 words per page double spaced)