We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byFredrick Bachelor
Modified about 1 year ago
ทฤษฎีและนโยบาย การเงิน Monetary Theory and Policy Money Supply Process Analyzing the Policy tools
The Federal Fund Market Federal Fund Rate Discount Rate Demand ( Reserve Demand ) Supply –Borrowed Reserve + Non – Borrowed Reserve
Fed Fund Rate Reserve E iDiD i FF R*NBR S D
Effect of Policy Tools Open Market Operation –Purchase / Sale Discount Loan –Increase rate / Decrease Rate Required Reserve –Increase require reserve ratio / Decrease RR
Fed Fund Rate Reserve E0E0 iDiD i FF0 R0R0 NBR Open Market Operation : Purchase S1S1 S0S0 D R1R1 i FF1 E1E1
Fed Fund Rate Reserve E0E0 iDiD i FF0 R0R0 NBR Open Market Operation : Sale S1S1 S0S0 D R1R1 i FF1 E1E1
Fed Fund Rate Reserve E0E0 iDiD i FF0 R0R0 NBR Discount Rate : Increase S1S1 S0S0 D R1R1 i FF1 E1E1
Fed Fund Rate Reserve E1E1 iDiD i FF0 R0R0 NBR Discount Rate : Decrease S1S1 S0S0 D R1R1 i FF1 E0E0
Fed Fund Rate Reserve E0E0 iDiD i FF0 R0R0 NBR S D0D0 E1E1 R1R1 i FF1 Required Reserve : Increase D1D1
Fed Fund Rate Reserve E0E0 iDiD i FF0 R0R0 NBR S D0D0 E1E1 R1R1 i FF1 Required Reserve : Decrease D1D1
1 Lecture 29: Monetary policy – part one Mishkin Ch15 – part A page
© 2012 Pearson Prentice Hall. All rights reserved The Federal Reserve’s Balance Sheet The conduct of monetary policy by the Federal Reserve involves.
Chapter 17 Tools of Monetary Policy. Copyright © 2007 Pearson Addison-Wesley. All rights reserved Tools of Monetary Policy Open market operations.
Four Possible Changes in Demand (D) and Supply (S) in a Market -- A Summary Richard Le.
MONETARY POLICY Conducted by: the Federal Reserve System.
Activity 38 The mechanics of monetary policy. Baseline case Assets Liabilities The FED Treasury Securities Federal Reserve Notes Checkable deposits Loans.
Stabilizing the Economy: The Role of the Fed Chapter 14.
Fed tools for changing the Money Supply. Mr. Nunn.
The Federal Reserve System Monetary Policy. Functions of the Federal Reserve System 1.Financial Services a.The “banker’s bank” 2.Supervise and Regulate.
CHAPTER 10: SECTION 5 Fed Tools for Changing the Money Supply Changing the Federal Reserve Requirement The Fed has three tools that it can use to raise.
Money Supply & The Fed How the Fed “creates” money.
Monetary Policy Tools Chapter 16 Section 3Chapter 16 Section 3.
Secondary Monetary Policy Tools Jill Student Jack Deskoccupier Dan Intheclouds Joanie Willgraduatesoon Austrian Economics May Term 2015 Professor Hal Snarr.
Unit 7 Macroeconomics: Taxes, Fiscal, and Monetary Policies Chapters 16.3 Economics Mr. Biggs.
Chapter 12 Monetary Policy. Introduction Monetary Policy – Federal Reserve using the money supply and interest rates to stabilize the economy Monetary.
The Tools of Monetary Policy Reserve Requirements, Discount Rates, and Open Market Operations…oh my!
BU204 - Macroeconomics Unit 8 Seminar. Key Term Assignment Fiat money M1 M2 FED Bank Reserves Federal funds rate FED discount rate Monetary policy.
MONETARY POLICY Actions the Federal Reserve takes to influence the level of GDP and the rate of inflation in the economy.
Chapter 13-4 The Federal Reserve System. The Federal Reserve A central bank is an institution that oversees and regulates the banking system and controls.
1 The Federal Reserve System and the Money Supply Process Chap 13 (8 th edition), Mishkin.
The Market for Reserves. Demand for Reserves ffr Reserves 0 When the federal funds rate is high, the opportunity cost of holding excess reserves is also.
ทฤษฎีและนโยบาย การเงิน Monetary Theory and Policy Money Supply Process Reference: Money, the Financial System, and the Economy ( R. Glenn Hubbard )
Monetary Tools. Tools of Monetary Policy Changing the reserve requirement Changing the discount rate Executing open market operations (buying and.
Interest Rates and Monetary Policy Chapter 14 Starts with the Demand for money Starts with the Demand for money People demand money for transactions and.
Copyright © 2002 Pearson Education, Inc. Slide 20-1.
Money Multiplier Objectives: 1.Determine the maximum potential extent to which the money supply will change following a Federal Reserve purchase or sale.
Tools of Monetary Policy Copyright 2014 Diane S. Docking1.
14 The Federal Reserve and Monetary Policy. money market The market for money in which the amount supplied and the amount demanded meet to determine the.
1 CH 17: Tools of Monetary policy. 2 Three policy tools the Fed use to control money supply and the interest rate: 1. OMOs 2. Discount rate 3. Reserve.
Ch 12. The Federal Reserve System. Some Notes: Open market operation: the buying and selling of government securities by the Fed. Monetary policy:
Monetary Policy Using the amount of money and credit available to consumers to influence the economy.
THE FEDERAL RESERVE SYSTEM. THE PROBLEM Up until the early 1900s, many banks lacked adequate reserves to meet the needs of the public Banks operated on.
Chapter 16 Interest Rates and Monetary Policy. Monetary Policy --Initiatives by Federal Reserve to influence the money supply and interest rates in pursuit.
How does a change in money supply affect the economy? Relevant reading: Ch 13 Monetary policy.
Monetary Policy Ch19 Notes. I. Monetary Policy A. Functions of the “the Fed” 1. To keep the money supply in check so that the economy does not have a.
Tools of Monetary Policy Open market operations –Affect the quantity of reserves and the monetary base Discount rate borrowed reserves –Affect the monetary.
Chapter Twelve: The Federal Reserve and Monetary Policy.
By Miles Overton and J-smash Hernandez Per: 1. Think of the Fed as having three “buttons” to push Every time a button is pushed either the money supply.
CONTEMPORARY ECONOMICS© Thomson South-Western 17.2Monetary Policy in the Short Run Explain the shape of the money demand curve. Explain how changes.
1 Lecture 28: Money supply Mishkin Ch14 – part B page
Chapter 15 Monetary Policy. Money Market – determines interest rate Demand for Money Transactions Speculative Precautionary Supply of money – controlled.
The Federal Reserve Part 2 Monetary Policy. Under the Monetary Policy definition, write: Easy Money Policy Easy money policy is monetary policy that results.
Monetary Policy review huh???? can you break it downnnnn??? MMMMonetary policy – things the Federal Reserve does to regulate the economy & influence.
Federal Reserve provides the following functions: Provides financial services to banks and other financial institutions Regulates banks Maintains.
Chapter 14 Presentation 1- Monetary Policy. Ways the Fed Controls the Money Supply 1. Open Market Operations (**Most used) 2. Changing the Reserve Ratio.
Alomar_111_211 Chapter 15 The Monetary Policy The Monetary Policy.
27 Module The Federal Reserve: Monetary Policy. What you will learn in this Module : The functions of the Federal Reserve System The major tools the Federal.
Monetary Policy Review. Draw a graph of the money market showing an increase in the money supply Name 3 things the FED can do to increase the money supply.
© 2017 SlidePlayer.com Inc. All rights reserved.