Chapter Ten

Reading chapter ten has given me a new awareness of the balancing game the federal reserve must play to keep inflation in check and keep the economy from running out of control. It is terrifying to realize that so much of our well being rests on paper that only has value because we believe it does. Letting inflation run rampant makes us feel rich for a very brief amount of time before it becomes a big problem while deflation is even worse. I was previously unaware of how important the federal reserve is in keeping the economy "healthy" through controlling inflation and monetary policy.