discuss the ethical implications of the Federal Reserves act

discuss the ethical implications of the Federal Reserve\'s actions to reduce inflation at the risk of raising unemployment. Be sure you discuss the segments of society such as younger workers older workers minority groups retirees low income households high income households goods producing firms service providing firms, etc., that are hurt most by an increase in inflation as well as those who are hurt most by an increase in unemployment.

Solution

Th federal Reserve\'s sctions to reduce inflation at the risk of raising unemployment has different implications on different segments of the society. Increase in inflation will severly impact the salaried class they they get a fixed income and increase in inflation will lower the level of real income of this class. Older workers getting their retirements funds will also get negatively impacted by inflation as real value of their pension fund declines. Rise in inflation will also negatively impact low income households and retirees.

It is mainly the business class and producer segment which will be positively impacted by rise in inflation rate in the economy. Thus, high income households, goods producing firms and service providing firms will profit by this increase in inflation rate as the price of their goods and service delivery will rise.