U.S. House of RepresentativesWashington, D.C. 20515
Dear Representative Johnson:
I am a young constituent of Texas interested in observing the political developments in the country. As a representative of Texas serving the nation for more than two decades, I would like to bring to your kind notice a key problem of public interest to initiate necessary actions for effecting a policy change in the near future.
My strong concern is about the current monetary policies of this great nation. As a youngster who is observing the economic development of this country with interest, I would like to express my views on some of my observations on the economic policies of the country that more often unduly favors short term gains by completely ignoring long-term development and future employment generation. As a seasoned politician with an excellent track record of chairing various social security committees, I trust in your ability and commitment to raise this issue in the US Congress. Like most of the your constituents of Texas, I too believe a change of monetary policy focusing on long-sighted decisions would save the country from a possible economic turmoil in future.
Like many fellow Americans, I appreciate that granting of operational independence to the Federal Reserve and other central banks. No doubt, this would protect the banks against various political pressures that ultimately lead to unsystematic and short-sighted policies of one kind or another (Orphanides). However, retaining a high degree of discretionary power in their hands makes them use the flexible power inappropriately often times. For instance, the policy makers of Federal Reserve continue to give more thrust to apparent short-term gains rather than long-term ones. The inflation that puts the average Americans to hardships is a typical example that proves the decision of policy makers wrong. During the past couple of decades the policies adopted by the Fed gave much importance to achieving short-term economic gains, employment and development. The countrymen reaped the benefits by getting good employment as the unemployment rate fell down to around five percent (Kohn). The more economic gains also proportionately added to the economic instability of the US economy. In other words, the high rate of inflation has actually ended up in a poor economic growth.
I would recommend the Fed to take a long view and adopt a more systematic policy move toward preserving and defending the stability of commodity prices in the country. The positive impacts of the new monetary policies with a long-term vision would surely unfold in a couple of years (Kocherlakota). This would help the American economy to develop in a more sustainable manner by ensuring price stability apart from creating more job opportunities in the long run.
I am also happy to read your views on this issue in the newspapers several times. Even though I realize that your viewpoints may slightly vary, I look forward to follow the mass media on your stance on this pressing issue.
My sincere thanks for considering my opinions on this matter. I honestly believe this matter is of paramount importance to the nation, and would wish to see a befitting legislation amendment in the near future to ensure the country’s long-term economic prosperity.
Kocherlakota, Narayana. Improving the Outlook with Better Monetary Policy. Federal Reserve Bank of Minneapolis. 01 February 2016. Web. 10 February 2016. https://www. minneapolisfed.org/
Kohn, Donald. U.S. Monetary Policy: Moving Toward the Exit in an Interconnected Global Economy. Brookings. 30 January 2015. Web. 10 February 2016. http://www. brookings.edu/research/speeches/2015/01/30-us-monetary-policy-global-economy-kohn
Orphanides, Athanasios. What’s wrong with current U.S. monetary policy? World Economic Forum. 12. November 2015. Web. 10 February 2016. http://www.weforum.org/agenda /2015/11/ whats-wrong-with-current-us-monetary-policy/