The Federal Reserve plays a role in our economy in many ways. The Federal Reserve provide us money so that we can purchase goods between parties. Without our median of exchange, our living standards would remain low. Citizen would not have the purchasing power to exchange with others. The Federal Reserve responsibility is to make sure that the worth of the currency is to the economy of the goods or services. (Kurth,2008). When there is no growth in the economy prices from the goods or services are higher than usually, this is a sign of inflation. When it comes to inflation congress and the Federal Reserve use the monetary policy to influence growth in the economy. (Kurth, 2008). This only create inflation.

The United States monetary system control the ability to create money to stimulate the economy. (Ebert , 2005,). They do this by giving tax rebates, tax breaks, and loans through the government with a low interest rate. For example: In today's economy, we seem to have some stresses, so the Federal Reserve has made some changes in interest rates by lowering it by ½ of percent. We are also hearing in the media that we will be getting a tax rebates check in order to help our economy. The consumer then spends the money, which boosts the economy. The real value of a dollar relies on its purchasing power. When the value of the dollar goes down the consumers, stop shopping. This then cause businesses to go out of business. In addition, jobs are lost too. If inflation keeps happening, the monetary system could collapse because of the depreciation of the dollar. The strength of the dollar represents the government. The Federal Reserve can only do so much to stop the falling economy. People are understanding this and beginning to work at home to make money online around the world globally. I feel this is the only way to trump inflation and live a better life.

References:

Ebert,J.R., & Griffin,W.R., (2007). Business essentials (6th ed.). Upper saddle river, NJ: Prentice Hall. pp.456,486 . CTU Online, (Ed.), (January 29, 2008). Live chat session. Colorado Springs, CO: CTU Online Virtual Campus, MGM110-0801A-21. Can be retrieved as archived from: https://campus.ctuonline.edu