Money Supply Measures Monetary Base = Currency + depository institution balances at the Fed Money supply is total amount of money in economy. money aggregates.

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Money Supply Measures Monetary Base = Currency + depository institution balances at the Fed Money supply is total amount of money in economy. money aggregates Monetary base and money supply are not same thing (definitions are different). Two money supply measures are (CDs) 1

2 Six Goals of Monetary Policy Full employment Economic growth Price index stability Interest rate stability Stable financial system Stable foreign exchange markets Set by the Humphrey-Hawkins Act of 1978 Monetary policy first impacts the financial sector. Then financial sector affects the real sector. Two schools of thought on how this works.

3 Things for Sure To Know for Exam Night Exam, Thurs Sept 24, MLC, 7pm Know everything on all slides of Modules 1.1, 1.2 and 1.3 (up to this slide). Definition of monetary base. Know: 11 types of financial intermediaries 5 services offered by intermediaries 5 risks faced by financial institutions 5 purposes of a central bank 6 goals of monetary policy Wed afternoon 2:00 to 4:30pm accessibility. Good to send saying you are coming.