Monetary Policy and the Federal Reserve System

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Monetary Policy and the Federal Reserve System Chapter 14 Monetary Policy and the Federal Reserve System

Table 14.1 The Monetary Base, the Money Multiplier, and the Money Supply in the United States Copyright © 2005 Pearson Addison-Wesley. All rights reserved.

Figure 14.1 The currency–deposit ratio and the reserve–deposit ratio in the Great Depression Copyright © 2005 Pearson Addison-Wesley. All rights reserved.

Figure 14.2 Monetary variables in the Great Depression Copyright © 2005 Pearson Addison-Wesley. All rights reserved.

Figure 14.2 Monetary variables in the Great Depression (cont’d) Copyright © 2005 Pearson Addison-Wesley. All rights reserved.

Figure 14.3 Location of the Federal Reserve Banks Copyright © 2005 Pearson Addison-Wesley. All rights reserved.

Table 14.2 The Balance Sheet of the Federal Reserve System (Billions of Dollars) Copyright © 2005 Pearson Addison-Wesley. All rights reserved.

Figure 14.4 Components of the monetary base Copyright © 2005 Pearson Addison-Wesley. All rights reserved.

Copyright © 2005 Pearson Addison-Wesley. All rights reserved.

Figure 14.5 The discount rate and the Fed funds rate Copyright © 2005 Pearson Addison-Wesley. All rights reserved.

Figure 14.6 Interest rate targeting Copyright © 2005 Pearson Addison-Wesley. All rights reserved.

Figure 14.7 Responses of output, prices, and the Fed funds rate to a monetary policy shock Copyright © 2005 Pearson Addison-Wesley. All rights reserved.

Box 14.2 The Taylor Rule Copyright © 2005 Pearson Addison-Wesley. All rights reserved.

Figure 14.8 The game between Dad and the kids Copyright © 2005 Pearson Addison-Wesley. All rights reserved.

Figure 14.9(a) The game between the Fed and the firms Copyright © 2005 Pearson Addison-Wesley. All rights reserved.

Figure 14.9(b) Copyright © 2005 Pearson Addison-Wesley. All rights reserved.

Figure 14.10 Central bank independence and inflation Copyright © 2005 Pearson Addison-Wesley. All rights reserved.

Figure 14.11 Interest rates and the 2001 recession Copyright © 2005 Pearson Addison-Wesley. All rights reserved.