You read a story in the newspaper blaming the Fed for pushing the economy into a recession. The article goes on to mention that not only has output fallen below its potential level but that inflation has also risen. If you were to write to the newspaper defending the Fed, what arguments would you make?

You read a story in the newspaper blaming the Fed for pushing the economy into a recession. The article goes on to mention that not only has output fallen below its potential level but that inflation has also risen. If you were to write to the newspaper defending the Fed, what arguments would you make?