Monetary policy: the economic surveillance of the FedModern monetary policy is defined as “[t]he actions of a central bank, a currency board or of another regulatory committee that determines the size and rate of growth of the money supply in a country, which in turn affects interest rates. Monetary policy is maintained by actions such as increasing the interest rate or changing the amount of money banks are required to keep in the vault, also called bank reserves” (Investopedia). Meanwhile, fiscal policy is determined by government actions and how money is spent and collected, not by a central bank. Modern monetary policy interactions between the central bank, the Treasury and the financial system have coincided with each other, but still require additional reforms to make the policy more effective given current changes in the economy. Two key goals of maximizing employment and stabilizing prices were established by Congress in the Federal Reserve Act with respect to monetary policy. These goals, known as the Federal Reserve's dual mandate, constitute a long-term goal of monetary policy. To achieve this monetary policy goal, the Federal Reserve was created as an independent agency by Congress to ensure that decisions were focused solely on fulfilling the dual mandate and were free from political influence. “The Federal Reserve's dual mandate and provisions guaranteeing its independence are two key factors that help guard against negative consequences in the United States” (FRB). Currently, the Federal Reserve, led by Chairman Ben Bernanke, is in charge of monetary policy in the United States. The FED is not only responsible for monitoring the nation's interest rates, but also has maintained...... middle of paper ......com/la-county-nonpartisan-in-los-angeles/american - monetary-institute-friend-history-of-money-monetary-reform-public-action-3-of-6>Morris, David P. "What the Fed's Operation Twist Means for You." THE UNITED STATES TODAY. Np, September 22, 2011. Internet. December 12, 2011.Consumer/50511514/1>.Mallin, Jay. "Federal Reserve (the Fed) - The New York Times." Times Topics - The New York Times. December 14, 2011. Web. December 14, 2011. “Modern Monetary Policy.” Investopedia. 2011. Internet. December 12, 2011. “Introducing the American Monetary Act.” July 18, 2010. the web. December 10. 2011. .