Скачать презентацию CHAPTER 3 THE FED AND INTEREST RATES Скачать презентацию CHAPTER 3 THE FED AND INTEREST RATES

1733ddbde6a141654111c74aad2c9330.ppt

  • Количество слайдов: 28

CHAPTER 3 THE FED AND INTEREST RATES CHAPTER 3 THE FED AND INTEREST RATES

Recall that the monetary base comprises the Fed’s 2 largest liabilities: Copyright© 2006 John Recall that the monetary base comprises the Fed’s 2 largest liabilities: Copyright© 2006 John Wiley & Sons, Inc. 2

Definitions of money Copyright© 2006 John Wiley & Sons, Inc. 3 Definitions of money Copyright© 2006 John Wiley & Sons, Inc. 3

The money supply involves the Monetary Aggregates Copyright© 2006 John Wiley & Sons, Inc. The money supply involves the Monetary Aggregates Copyright© 2006 John Wiley & Sons, Inc. 4

The Fed controls the monetary base…. Copyright© 2006 John Wiley & Sons, Inc. 5 The Fed controls the monetary base…. Copyright© 2006 John Wiley & Sons, Inc. 5

Copyright© 2006 John Wiley & Sons, Inc. 6 Copyright© 2006 John Wiley & Sons, Inc. 6

…Thus the Fed controls the money supply…. 7 …Thus the Fed controls the money supply…. 7

FED Funds Market Copyright© 2006 John Wiley & Sons, Inc. 8 FED Funds Market Copyright© 2006 John Wiley & Sons, Inc. 8

Copyright© 2006 John Wiley & Sons, Inc. 9 Copyright© 2006 John Wiley & Sons, Inc. 9

As Fed adjusts tools of monetary policy, reserve effects influence Fed Funds rate significantly As Fed adjusts tools of monetary policy, reserve effects influence Fed Funds rate significantly in short run Copyright© 2006 John Wiley & Sons, Inc. 14

Fed cannot set Fed Funds rate in long run Copyright© 2006 John Wiley & Fed cannot set Fed Funds rate in long run Copyright© 2006 John Wiley & Sons, Inc. 15

The Importance of the fed funds rate Copyright© 2006 John Wiley & Sons, Inc. The Importance of the fed funds rate Copyright© 2006 John Wiley & Sons, Inc. 16

Copyright© 2006 John Wiley & Sons, Inc. 18 Copyright© 2006 John Wiley & Sons, Inc. 18

6 basic goals of monetary policy, set by the Humphrey-Hawkins Act of 1978 Copyright© 6 basic goals of monetary policy, set by the Humphrey-Hawkins Act of 1978 Copyright© 2006 John Wiley & Sons, Inc. 20

1. Full employment Copyright© 2006 John Wiley & Sons, Inc. 21 1. Full employment Copyright© 2006 John Wiley & Sons, Inc. 21

2. Economic Growth Copyright© 2006 John Wiley & Sons, Inc. 22 2. Economic Growth Copyright© 2006 John Wiley & Sons, Inc. 22

3. Price Stability Copyright© 2006 John Wiley & Sons, Inc. 23 3. Price Stability Copyright© 2006 John Wiley & Sons, Inc. 23

4. Interest rate Stability Copyright© 2006 John Wiley & Sons, Inc. 24 4. Interest rate Stability Copyright© 2006 John Wiley & Sons, Inc. 24

5. Stability of the Financial system Copyright© 2006 John Wiley & Sons, Inc. 25 5. Stability of the Financial system Copyright© 2006 John Wiley & Sons, Inc. 25

6. Stability of foreign exchanges markets Copyright© 2006 John Wiley & Sons, Inc. 26 6. Stability of foreign exchanges markets Copyright© 2006 John Wiley & Sons, Inc. 26

Possible Conflicts among goals Copyright© 2006 John Wiley & Sons, Inc. 27 Possible Conflicts among goals Copyright© 2006 John Wiley & Sons, Inc. 27

Copyright© 2006 John Wiley & Sons, Inc. 28 Copyright© 2006 John Wiley & Sons, Inc. 28