MonetaryPolicyandtheNationalEconomy VictoriansheardwithgraveattentionthattheBankRatehadbeenraised.Theydidnotknowwhatitmeant.Buttheyknewthatitwasanactofextremewisdom. JOHNKENNETHGALBRAITH MoneyandIncome:TheImportantDifference America’sCentralBank:TheFederalReserveSystem ...
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reservesTheFedcannottargetbothinterestratesandreservesatthesametime ChoosingIntermediateTargets Monetaryaggregates ExchangeratesLevelofnationaloutput Levelofactualorexpectedinflation Interestrates TargetingtheFedFundsRate:1970-1979 Fed’sTarget:FedfundsrateIndicatorofsupplyofloanablefunds...
5,Monetary Theory and Policy,Chapter Objectives,Learn the wellknown theories of monetary policy Review the tradeoffs inv
Monetary Theory and Policy参考.ppt,Integrating Monetary and Fiscal Policies Monetizing the debt Definition---financing the national debt by printing new money or through open market operation, which cause inflation due to a large money supply Should the
InvestmentandConsumptionwillbothincrease causingariseinaggregatedemand Inthemedium-termtheeconomywillexpandas increasingaggregatedemandcausesgrowthin output,employmentandnationalincome. ExpansionaryMonetaryPolicyisattemptingto increasetherateofgrowthoftheeconomyandthe moneysupplybyincreasingthevelocityof circulationofmoney ...
Text:FiscalandMonetaryPolicy（财政政策与货币政策）1.Keywords2.Stabilizationpolicy3.Fiscalpolicy4.Monetarypolicy5.Questions •insufficientdemand•plannedspending•stabilizationpolicy•expansionarypolicy•potentialoutput •expansionarygap•contractionarypolicy•fiscalpolicy•monetarypolicy•governmentpurchases...
nEffectivenessofmonetarypolicydependsuponthesensitivity(elasticity)ofeconomytochangesininterestrates KeynesianTheory,cont.nAdvocatesfiscalpolicynFocusedongovernmentdeficit/surplus spendingtoimpacteconomicactivitynMonetarypolicytransmittedslowlyviabank creditpolicyandinterestratesnAproactiveeconomicpolicynCorrectingeconomicrecession...
3.2.3ToolsoftheMonetaryPolicy 1 OpenMarketOperations Thisentailsmanagingthequantityofmoneyincirculationthroughthebuyingandsellingofvariousfinancialinstruments,suchastreasurybills,companybonds,orforeigncurrencies,inexchangeformoneyondepositatthecentralbank.2 DiscountPolicy 3 ReserveRequirements Thediscountwindowisan...
ChapterSixMoneyandMonetaryPolicy GoalsoftheChapter ToidentifythedefinitionofMoneyToidentifythefunctionsofMoneyToknowthecriteriaofbeingMoneyToknowthemeasurementofMoneyToknowtherelationshipbetweenMoney&businesscycles,inflation,interestRatesToknowtheconductofMonetaryPolicy Discussion •Thehistoryof...