Macroeconmics Term Paper Example | Topics and Well Written Essays - 2250 words

Macroeconmics - enclosure Paper Examplegh a combination of stable prices of goods and services across the economy coupled with a low inflation level and level of confidence of the investors in the currency of the country. The Fed comes out with the fiscal policy in order to ensure a certain key objectives like, delivering price stability with a low inflation level coupled with an objective to support the Governments economic objectives of result and employment. To understand how the Fed monitors price related regulations to keep a check on inflation, we may subscribe to a small example of the regulation of house and property prices. To take any decisions related to engagement rates keeping in mind the ongoing inflation rate, the Fed must be ingrained with the booming property prices and must take steps to ensure that the prices are not artificial.Government intervenes by dint of its central bank to regulate the prices of many commodities similarly it also regulates the prices of houses like any other of the essence(predicate) commodity. Fed has the responsibility to keep a check on asset prices including the prices of houses. There keister be a number of reasons why the prices of houses may shoot up, like the simple rule of demand and contribute has a definite impact. (Demand and Supply for Housing).Other reasons behind a change in property prices can be Mortgages. A mortgage is the money borrowed to buy a house, as for most people acquire a house is not easy. Over the years mortgage market has picked up greatly and the reliable scenario is totally different from the one that existed in the beginning. Mortgages were supplied exactly by the building societies. Building societies were non-profit institutions and encouraged only the members for the grant of loans, so the people who were members and had contributed to an extent for a considerable period of time got loans easily and score with building societies became the only means to get mortgages. S oon these societies had to compete with the banks and other financial