1. Chapter 4. Money. Parts of Chapter 4 in the previous edition are now in Chapter 5 of the eighth edition Homework p. 100, # 2, 4 Link to syllabussyllabus

2. Table 4-1 p. 86. The Measures of Money

5. The Federal Reserve System. Other Text

6. OMC Meeting (early 2012?)

7. Open Market Committee Seating

8. RollerCoaster joke

9. GreenspanJoke

10. Greenspan and Paul Volcker, his predecessor Close, but no cigar

11. Greenspan viewed by cartoonists Inscrutable Alan

12. The Monetary Base and the Money Supply. (intro text)

13. How Banks Create Money. (Intro text) New Loans Total (this New stage) Loans 900 900 810 1,710 Fourth stage 729 2,629 3,439 729 2,439

14. Reserve Requirements, US, 2006. (different intro text). If reserve requirements are small, the money multiplier is large – except that people keep cash.

15. Figure 4-1, p. 95 Quantitative Easing Point is that the increase in the monetary base has not led to higher money supply, nor to inflation, because banks have accumulated excess reserves, because private sector hasn’t borrowed.

16. Source: Fed of St. Louis: Monetary Trends (Sept. 2012) Excess Reserves

17. Table 4.2 p. 97 The Money Supply and its Determinants, 1929 and 1933.