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The historic American Miracle has occurred in spite of intermittent recessions and downturns orchestrated by the Federal Reserve The Federal Reserve has operated through a three-stage sequence of interventions -4FEDERAL RESERVE INTEVNTIONS 1 When the Fed perceives inflation to be rising it decreases the money supply M2 and increases interest rates the Federal Funds Rate FFR This M2/FFR ratio is useful as a monetary index. But periodic downturns and recessions interrupt the innovative process...
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