Understanding the Process of Accepting Monetary Policy Changes

The Federal Reserve’s implementation of its first interest rate hike approximately one year ago caused various reactions from market participants. Surprisingly, there are many similarities between the steps needed for the American public to accept the new hawkish monetary policy of the Fed and the actions taken to overcome a significant life event such as grief. This article will examine the similarities between the two processes and how they are necessary for acceptance.

The Seven Stages of Grief

The seven stages of grief are a model developed by psychiatrist Elisabeth Kubler-Ross to describe the process people go through when they experience significant loss. The stages are denial, anger, bargaining, depression, acceptance, testing, and integration. Each stage is a necessary step in overcoming grief and accepting the loss.

The Process of Accepting Monetary Policy Changes

Similarly, accepting the Federal Reserve’s new hawkish monetary policy may involve several stages. At first, there may be a feeling of denial or disbelief that the policy is necessary. Then, there may be anger or frustration about the potential consequences of the policy, such as higher interest rates or reduced economic growth. Afterward, people may try to bargain, seeking ways to mitigate the impact of the policy or find alternatives. Then, as the procedure takes effect, there may be depression or anxiety about the unknown future. Eventually, however, people may accept the policy as necessary and begin testing it to see how it affects them. Finally, the procedure may be integrated into people’s understanding of the economy and financial decisions.

Similarities Between Grief and Monetary Policy Acceptance

There are many similarities between the process of accepting the Federal Reserve’s new hawkish monetary policy and the process of overcoming grief. Both methods involve intense emotions, and both involve a series of steps that are necessary for acceptance. Accepting monetary policy changes may take time and may include setbacks and adjustments. However, approving the new policy may ultimately lead to a more stable and prosperous economy in the long term.

Related Facts

• The Federal Reserve’s first interest rate hike was implemented approximately one year ago.
• Psychiatrist Elisabeth Kubler-Ross developed the seven stages of grief.
• Accepting the Federal Reserve’s new hawkish monetary policy may involve several stages.
• Accepting the new policy may lead to a more stable and prosperous economy in the long term.

Key Takeaways

• Accepting the Federal Reserve’s new hawkish monetary policy is similar to overcoming grief.
• The seven stages of grief are denial, anger, bargaining, depression, acceptance, testing, and integration.
• Accepting monetary policy changes may involve feelings of denial, anger, and depression but ultimately may lead to a more stable and prosperous economy in the long term.

Conclusion

Accepting the Federal Reserve’s new hawkish monetary policy is similar to overcoming grief. Both involve intense emotions and a series of steps necessary for acceptance. Although the process may take time and may include setbacks,  the approval of the new policy may ultimately lead to a more stable and prosperous economy in the long term.