Daily Archives: Sep 9, 2017 at 06:28 am EST

Book Bits | 9 September 2017

The Myth of Independence: How Congress Governs the Federal Reserve
By Sarah Binder and Mark Spindel
Review via Publishers Weekly
Binder and Spindel have written an extremely thorough study of the Federal Reserve that shows how the institution, while in theory insulated from politics, is in reality anything but. Binder and Spindel persuasively argue that Congress and the Federal Reserve are interdependent entities. By giving the Fed the power to control monetary policy and steer the economy, lawmakers gain their own convenient scapegoat when the economy sours. Likewise, the Fed relies on Congress for political support to implement “unpopular but necessary” policies.
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