Why study Money & Banking? role of financial system role of the Federal Reserve links between money, interest rates, and economy role of financial system.

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Presentation transcript:

Why study Money & Banking? role of financial system role of the Federal Reserve links between money, interest rates, and economy role of financial system role of the Federal Reserve links between money, interest rates, and economy

in the news… financial statement fraud conflicts of interest with brokerage firms conduct of mutual funds (Eliot Spitzer running for governor) future of NYSE  going public? financial statement fraud conflicts of interest with brokerage firms conduct of mutual funds (Eliot Spitzer running for governor) future of NYSE  going public?

The Federal Reserve rising interest rates  what is the significance? who will replace Greenspan? rising interest rates  what is the significance? who will replace Greenspan?

why do interest rates fluctuate? why are they different?

Money & the Economy

Money & Price Level

Money and Inflation

The U.S. Dollar January 2002  1 dollar = 1.13 euros  1 dollar = 133 yen January 2005  1 dollar =.75 euros  1 dollar = 104 yen January 2002  1 dollar = 1.13 euros  1 dollar = 133 yen January 2005  1 dollar =.75 euros  1 dollar = 104 yen

the consequences of the falling $ for U.S. trade? for the stock and bond markets? for financing the federal deficits? for U.S. trade? for the stock and bond markets? for financing the federal deficits?