Economic Crisis Monetary Theory and Policy March 28, 2009.

Slides:

Advertisements

Similar presentations

The Federal Reserve and Monetary Policy

Advertisements

The Federal Reserve In Action

Federal Reserve and Macroeconomic Policy

The Federal Reserve System

The Federal Reserve System Monetary Policy. Functions of the Federal Reserve System 1.Financial Services a.The “banker’s bank” 2.Supervise and Regulate.

Activity 38 The mechanics of monetary policy. Baseline case Assets Liabilities The FED Treasury Securities Federal Reserve Notes Checkable deposits Loans.

SESSION 5: THE FEDERAL RESERVE SYSTEM TALKING POINTS THE FEDERAL RESERVE SYSTEM 1.The Federal Reserve System (often referred to as “the Fed”) is the central.

Ch 12. The Federal Reserve System. Some Notes:  Open market operation: the buying and selling of government securities by the Fed.  Monetary policy:

The Federal Reserve and Monetary Policy

© 2007 Prentice Hall Business Publishing; Essentials of Economics, R. Glenn Hubbard, Anthony Patrick O’Brien CHAPTER 16: Monetary Policy 1 of 30 The Federal.

Stabilizing the Economy: The Role of the Fed Chapter 14.

What can Government do to foster Economic Growth and Equity? The Role of Monetary Policy Cathy Minehan Economic Growth with Equity Open Classroom PPS 225.

Stabilizing the Economy: The Role of the Fed Chapter 14.

The Fed and Monetary Policy

What can Government do to foster Economic Growth and Equity? The Role of Monetary Policy Cathy Minehan Economic Growth with Equity Open Classroom PPS 225.

Federal Reserve Economics 71a Spring 2007 Mayo, Chapter 5 (skim) Lecture notes 2.5.

The Federal Reserve System Lecture 6.7. Federal Reserve Central bank of the U.S. that controls the size of the money supply to –help regulate the economy.

The Federal Reserve How our Central Bank is structured.

Rating the Rates: The Fed’s Role in the Larger Economy By Tanya Hanson and Tom Glaser Federal Reserve Bank of Atlanta – Lesson Plan Contest of the Year.

Monetary Policy © 2010, TESCCC. Monetary Policy Federal Reserve policy of regulating the availability of money and credit in the economy to deal with.

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license.

The Federal Reserve What is the Fed? How does the Fed help shape the economic conditions in the US? How does the Fed implement monetary policy?

Monetary Policy Using the amount of money and credit available to consumers to influence the economy.

Mr. Odren.  Congress created Fed in 1913 as Central Banking organization.  Major purpose: End periodic financial panics that had occurred in 1800 and.

Monetary Policy.

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license.

U.S. Economic Institutions. The Treasury Department An executive department, established in 1789 Secretary of the Treasury – Head of the department and.

© South-Western Publishing Slide 1 DEVELOPMENT OF U.S. BANKING Creation of a National Currency Banking Before Banking in the.

DEVELOPMENT OF U.S. BANKING

Copyright South-Western, a division of Thomson, Inc. Slide 1 DEVELOPMENT OF U.S. BANKING Creation of a National Currency Banking Before.

McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 15 Central Banks in the World Today.

Money, Banking, and Financial Institutions 14 McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 16: Monetary Policy Tools. 1. The Federal Funds Market and Reserves Central banks have three primary tools for influencing the money supply Money.

Federal Reserve and Money Supply Mr. Odren. The Fed Congress created Fed in 1913 as Central Banking organization. Major purpose: End periodic financial.

From a Housing Problem to a Financial Crisis U.S. Housing Prices since 2000.

1 Chapter 5 The Overseer: The Federal Reserve System © 2000 South-Western College Publishing.

Federal Reserve System. The Role of the Federal Reserve Provides financial services to the government Regulates financial institutions Maintains the payment.

Bank runs Before the Federal Reserve was founded, the nation was plagued with financial crises. At times, these crises led to “panics” in which people.

Fed tools for changing the Money Supply. Mr. Nunn.

Economics Chapter 15 The Federal Reserve. Section 1: Organization and Functions of the Fed Created in 1913 Made to end periodic financial panics The Fed.

How does the Gov’t address the Problems with the Business Cycle (Inflation and Recession) 1. Fiscal Policy 2. Monetary Policy.

Monetary Policy Control of money supply (M) and interest rates (i)

The History of Banking 1791: The First Bank of the US was established to hold the government’s $$, help the government to tax, regulate commerce, and issue.

Capital Markets Update THEN and NOW February 19, 2009 Christine Solich Assistant Director of Investments.

The Federal Reserve In Action. What is the Fed?  Central bank of the United States  Established in 1913  Purpose is to ensure a stable economy for.

Monetary Policy Using the amount of money and credit available to consumers to ……. influence the economy.

The FED and Monetary Policy

1 The role of the Fed is to “take away the punch bowl just as the party gets going”

The Fed Chapter 16. A Stronger Fed In 1935, Congress adjusted the Federal Reserve structure so that the system could respond more effectively to crises.

The Federal Reserve In Action. What is the Fed?  Central bank of the United States  Established in 1913  Purpose is to ensure a stable economy for.

Before the Federal Reserve was founded, the nation was plagued with financial crises. At times, these crises led to “panics” in which people raced to their.

The Federal Reserve In Action. What is the Fed?  Central bank of the United States  Established in 1913 (Federal Reserve Act of 1913)  Purpose is to.

Actions of the Federal Reserve

Monetary Policy Using the amount of money and credit available to consumers to influence the economy.

Money Economists define money as “anything that is generally accepted in exchange for goods and services.” William McEchern, Economics, p. 599.

Table 11.1 A Simplified Balance Sheet of a Private Bank AssetsLiabilities Loans $ 70 millionDeposits $ 100 million Government Bonds $ 20 million Reserves.

Money, Banking, and Financial Institutions Chapter 14 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without.

Federal Reserve Chapter 16 Section 3 Monetary Policy Tools.

Domestic Politics and Money. Learning output of the class: - better understanding of the current international monetary system - better understanding.

Money and Banking Lecture 36. Review of the Previous Lecture Deposit Multiplier and Money Multiplier Central Bank’s Monetary Policy Toolbox Target Federal.

Unit 8 Day 3 Govt Policies w/i the Economy. Fiscal PolicyMonetary Policy Definition is the use of govt expenditure and revenue collection to influence.

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.

The Federal Reserve. Federal Reserve Act of 1913  Created 12 regional independent banks.

TAKEN FROM VIDEO The Fed Today. The Federal Reserve The Federal Reserve is known as the ……….? Central Bank of the United States.

Actions of the Federal Reserve

Global Economic Watch Money and the Financial System December 1, 2010.

Monetary Policy & Politics

Federal Reserve System

Chapter 12 The Federal Reserve and Monetary Policy.

Monetarism and the Economy

Presentation transcript:

Economic Crisis Monetary Theory and Policy March 28, 2009

Economy Today Press Release (03/23/09) - The Role of the Federal Reserve in Preserving Financial and Monetary Stability Joint Statement by the Department of the Treasury and the Federal Reserve Sound economic performance requires both financial stability and monetary stability. As the nation's central bank, the Federal Reserve has critical responsibilities in both areas. The Congress created the Federal Reserve in 1913 in large part in response to the periodic panics and crises that plagued the U.S. financial system in the 19th and early 20th centuries. onetary/ b.htm

Guarantee Program The U.S. Treasury Department has established a Temporary Guarantee Program for Money Market Funds. Under this program, the U.S. Treasury will guarantee to investors that they will receive $1 for each money market fund share held as of close of business on September 19, 2008.

TARP (TALF) Term Asset-Backed Securities Loan Facility: Terms and Conditions (TALF) The TALF is intended to make credit available to consumers and businesses on more favorable terms by facilitating the issuance of asset-backed securities (ABS) and improving the market conditions for ABS more generally. Term Asset-Backed Securities Loan Facility: Terms and Conditions 1

Money Supply

Credit Market

Inflation

Discussion Why do you think the Federal Reserve and Department of the Treasury sought to clarify the central bank’s role? Why some policymakers are concerned that the central bank may have exceeded its mandate with its TARP and other emergency initiatives? What monetary policy actions may be required later by the Fed to help protect purchase power?