Monetary economics

The article starts out by saying the Fed tried to upstart the economy by reducing interest rates, and it was unsuccessful to jumpstart the economy. A reduction in the interest rate, is an expansionary monetary policy. Meaning it is a policy the Fed uses to increase the money supply in the economy. This policy affects many markets, the first market being the money market. A shift to the right of the money supply line in the money market will decrease the interest rate, since money demand is…

Central banks have never been stronger than now since they play an ultimate role in the growth of economies. Monetary policy is seen as the central tool of macroeconomic stabilization, and in some countries monetary policy is implemented by an independent central bank (Blinder, 1998). According to Singleton (2011), the world central banks have experienced two revolutions in the 1940s and 1980s, respectively. The former indicates that the central banks were less autonomous and were controlled by…

Every president serves their term in different ways, the economy may be better with or worse with a certain president. One of the president’s job is being the “Chief Guardian of the Economy.” The president meets with economic advisers to discuss ways to reduce unemployment and meets with business and labor leaders to discuss their needs and problems. When they think the economy needs help they try to fix the problem, but it is not their fault if the economy succeeds or fails, they just make…

The purpose of the OMO is to implement the monetary policies that were made on the FOMC. There are different types of OMOs, the most commonly used are: triparty, repos and securities purchases. The OMO enable the Fed to affect the supply of reserve balance in the banking system and this way influence short-term interest rates and other monetary policy targets. Also the OMO through the Fed can influence the level of reserve balances by either…

The first article written by The New York Times explains why the Fed supports economic stimulus. Economic stimulus is the term used to help a struggling economy. The Fed argues by decreasing interest rates and increasing the spending within the government are a couple examples of how economic stimulus works. In this article the Fed’s chairman Mr. Ben S. Bernanke explains to the Senate how they are improving the economy. Mr. Benanke…

Currently in the Uk when there has been a financial crisis like the one of 2010, banks have been unwilling to lend money and there has been a lack of credit due to the perceived risk of default by consumers, which leads to further economic difficulty due to the lack of credit and therefore consumption. Sovereign money could provide an answer to this problem as the central bank would be in charge of creating money it could create money in these times in order to try and counter act…

Introduction The European Union – EU consists of 28 countries that participates in the world economy as one economic unit and partly operates under one official currency, the euro. England is one of the biggest members; however, instead of adopting the euro, they still keep pound sterling as their official currency. One of the reasons for keeping the pound can certainly be found in British pound attack in 1992 and Quantum fund is blame as the culprit. This paper contains 4 chapters which are…

all that she is comprised of, finds herself at what almost can be classified as tumultuous. And with the national economy being stagnant at most, the question of whether or not to reinstate the Gold Standard as Global Prime Monetary System, is on the rise in spite the “economic downfalls” theorists strongly believe it will bring about. But be that as it may, the notion is still out there and it doesn’t seem to be going anywhere any time soon.…

society that controls the money of the whole world, but it is not. The federal reserve system has four functions. The most important and obvious function is to organize and carry out monetary policy. It manages inflation and keeps stable prices. The main purpose of this fiscal policy is to maintain a right economic evolution. Second, The Fed oversees and organizes many of the U.S. banks as a method to keep the consumers' affairs safe and protected (Amadeo, 2017). Third, Third, the Fed preserves…

structural weaknesses and inadequate monetary policy by Asian governments. This paper will discuss three important central bank institutional features - central bank independence, central bank transparency and inflation targeting – and examine whether these features changed after the financial crisis and their impact in terms of helping Asian economies transform into healthier situations post-crisis. 4.1 Central Bank Independence Prior to the 1997 crisis, monetary policy in Asian countries…