1/18/06. Some announcements HW #1 posted – due Weds, 1/25 – also, we will have a quiz on 1/25 as well! Practice HW posted, we will do today! Some lecture.

Slides:



Advertisements
Similar presentations
Economics Chapter Fourteen.
Advertisements

Federal Reserve and Macroeconomic Policy
Money Multiplier Objectives: 1.Determine the maximum potential extent to which the money supply will change following a Federal Reserve purchase or sale.
Taxes, Fiscal, and Monetary Policies
Comparing Fiscal Policy and Monetary Policy. Who Operates It? Fiscal Policy –President –Congress –Elected officials –Legislation Monetary Policy –Federal.
Test Your Knowledge Monetary Policy Click on the letter choices to test your understanding ABC.
The Federal Reserve System Monetary Policy. Functions of the Federal Reserve System 1.Financial Services a.The “banker’s bank” 2.Supervise and Regulate.
G. Money and Banking and How Banks Create Money 1. The process of monetary creation...an application 2. The application of the monetary multiplier H. The.
9/6/06 Welcome to Money and Banking! Instructor: Russell P. Chuderewicz A little about myself.
Chapter 18. Monetary Policy The market for reserves Open market operations Discount lending Reserve requirements Goals of monetary policy Using targets.
Lecture 4: Financial Markets Goal: Determine equilibrium interest rate Short run Main cyclical instrument (Central Bank) Monetary policy (as opposed to.
Central Banking. I. The Federal Reserve System –The Board of Governors –Advisory Councils Federal Advisory Council Consumer Advisory Council Thrift Institutions.
Chapter 16. Structure of Central Banks & the Federal Reserve System Origins Structure Comparison to ECB Origins Structure Comparison to ECB.
CHAPTER 13 Role of money.
Chapter 14. Structure of Central Banks & the Federal Reserve System Origins Structure Independence Origins Structure Independence.
Maclachlan, Macroeconomics Fall Principles & Policies I: Macroeconomics Chapter 12: Monetary Policy and the Debate about Macro Policy.
Federal Reserve Economics 71a Spring 2007 Mayo, Chapter 5 (skim) Lecture notes 2.5.
The Federal Reserve. What is the Federal Reserve??  central bank of the US  created in 1913 by an act of Congress & restructured after the Great Depression.
Lecture 9: Structure and function of Central bank (Federal reserve)
Entering Bernanke’s Domain.  Fundamental Questions ◦ What is money? ◦ Where does money come from? ◦ What role do banks play in the macro economy?  Important.
The Federal Reserve Started in 1913 is response to yet another financial crisis Is Quasi-public Serves three purposes Regulates the payment system Supervises.
The Federal Reserve How our Central Bank is structured.
Interest Rates and Monetary Policy
33 Interest Rates and Monetary Policy McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Monetary Policy Who controls monetary policy? What is monetary policy? How does monetary policy work?
33 Interest Rates and Monetary Policy McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
The Federal Reserve and Monetary Policy
1. Review Money Market and Loanable Funds Market HW and Practice FRQ 2. Notes: The Federal Reserve System Unit 3 Exam is postponed until Monday/Tuesday.
© 2013 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
FISCAL AND MONETARY POLICY How do policymakers use fiscal and monetary policy to stabilize the US economy?
Macro Chapter 14 Presentation 2- Expansionary and Restrictive Monetary Policy.
16 McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Interest Rates and Monetary Policy.
The Federal Reserve System. Who do you think is the most powerful person in the world? 
© 2010 by Cengage Learning Chapter 26 _______________ Real Estate and the Economy.
Do Now: What do you already know about the Federal Reserve?
Economics Chapter 15 The Federal Reserve. Section 1: Organization and Functions of the Fed Created in 1913 Made to end periodic financial panics The Fed.
The Federal Reserve System. Powers of a Central Bank  Acts as a banker to the central government  Acts as a banker to banks  Acts as a regulator of.
MONETARY POLICY Conducted by: the Federal Reserve System.
Federal Reserve provides the following functions:  Provides financial services to banks and other financial institutions  Regulates banks  Maintains.
Economics Chapter 15 The Federal Reserve. Section 1: Organization and Functions of the Fed Created in 1913 Made to end periodic financial panics The Fed.
Warm Up: How can the fed influence the money supply of the nation?
BU204 - Macroeconomics Unit 8 Seminar. Key Term Assignment Fiat money M1 M2 FED Bank Reserves Federal funds rate FED discount rate Monetary policy.
Today’s Schedule – 12/1 Quizzes Passed Back Monetary Policy PPT Unit 5 Test Review HW: – Study for Unit 5 Test – Stock Market Report: Due Monday.
FISCAL AND MONETARY POLICY MIX Principles of Macroeconomics Lecture 8c.
The Fed Chapter 16. A Stronger Fed In 1935, Congress adjusted the Federal Reserve structure so that the system could respond more effectively to crises.
CHAPTER FIFTEEN MONETARY POLICY I. THE FED IS THE FEDERAL RESERVE SYSTEM A. THE BOARD OF GOVERNORS FORMULATES POLICY AND THE TWELVE FEDERAL RESERVE BANKS.
The Federal Reserve System and the Monetary Policy Chapter 16.
Today’s Schedule – 12/3 Monetary Policy PPT MP Scenarios HW: – Study for Unit 5 Test.
The Federal Reserve In Action. What is the Fed?  Central bank of the United States  Established in 1913  Purpose is to ensure a stable economy for.
Today’s Topic: Fiscal Policy What is fiscal policy? –The taxing and spending policies of our national government Who controls fiscal policy? –Congress.
The Federal Reserve. Purpose of “The FED” The Nation’s Central Bank Control Money Supply Regulate the Economy Through Monetary Policy The Government’s.
Please turn to page 397 in the text book, read the profile on Ben Bernanke and answer the four questions. 1.What does the Federal Reserve Bank do? 2.As.
Federal Reserve Policies Kevin Scofield. Overview  Federal Open Market Committee  Goals of the Federal Monetary Policy  Tools of the Federal Monetary.
In This Lecture…..  The Federal Reserve System  Controlling the Money Supply  Open Market Operations  The Required Reserve Ratio  The Discount Rate.
Chapter 16 Section 1 and 2.  The Fed in American History ◦ Monetary Policy  The actions the Fed takes to influence real GDP and rate of inflation ◦
1 Monetary Policy How Monetary Policy Works in the Models Price level Real output AD 0 P0P0 AD 1 P1P1 Y0Y0 Y1Y1 SAS Monetary policy affects both.
The Federal Reserve System. Prior to 1913, hundreds of national banks in the U.S. could print as much paper money as they wanted They could lend a lot.
AIM:How does the Federal Reserve handle monetary policy? Yr8Vghttps:// Yr8Vg Do Now:
Monetary Policy It influences the Model of the Economy.
Macroeconomics The study of behavior and decision making of entire economies.
Monetary Policy Tools Describe how the Federal Reserve uses the tools of monetary policy to promote price stability, full employment, and economic growth.
Monetary Policy and the Federal Reserve System
Wednesday, Oct. 26 Please get out your notes and something to write with Review Questions – answer these in your notes:
Monetary Policy Practice EOCT Questions
Standard SSEMA2- Explain the role and function of the Federal reserve.
APK: Activation of Prior Knowledge Write at least 2-3 sentences describing a time when… you relied and/or hoped for someone to help you fix a bad financial.
Federal Reserve and Central Banking
ECONOMICS: April 20 Warm-up: If the economy is experiencing a recession, would the Fed increase or decrease the money supply? Why?
ECONOMICS: November 13 Warm-up If the economy is experiencing a recession, to get the economy back on track: (1) Would the government increase or decrease.
Monetary & Fiscal Policy Mix Quiz is Friday
Presentation transcript:

1/18/06

Some announcements HW #1 posted – due Weds, 1/25 – also, we will have a quiz on 1/25 as well! Practice HW posted, we will do today! Some lecture notes posted – on the money market, money multiplier, and the great depression (we did this last class). Stock – trak, let’s make some bets! We will go long and short on stocks (equities). Finish up some terms, hopefully

Key terms/topics OMO (open market operations) FOMC (Federal Open Market Committee) Beige Book Policy Lags and forward looking behavior (two analogies – cruise ship ; driving a car) Review of current state of affairs regarding actual fed behavior and the signals they are sending (Go Open Market Page)

Key terms/topics (cont’d) Board of Governors The 12 Regional banks Reserve Market (A Y2K example) Reserves: Two types: 1) excess and required Reserve Requirement Ratio The Money Supply The Federal Funds Rate The Discount Rate Interest rates: Short Term vs Long Term: Real vs Nominal How monetary policy works!

Key terms/topics (cont’d) Fiscal policy Monetary policy NAIRU Full employment Potential growth rate of economy

Key terms/topics (cont’d) The Fed’s loss function Exogenous shocks Hawks vs doves Overheating The new economy The Importance of Productivity Speed limit of the economy Traditional model

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2025 SlidePlayer.com. Inc. All rights reserved.