The Great Depression Revisited
... reserves—rather than as a sign that banks wanted to keep a good portion of their reserves out of the “required” category. To preclude the possibility of a monetary expansion outside the policy makers’ control, the Federal Reserve raised the reserve requirement (in 1936 and 1937) to match the actual ...
... reserves—rather than as a sign that banks wanted to keep a good portion of their reserves out of the “required” category. To preclude the possibility of a monetary expansion outside the policy makers’ control, the Federal Reserve raised the reserve requirement (in 1936 and 1937) to match the actual ...
Modern Money: Fiat or Credit? Author(s): Perry Mehrling Source:
... state money is the ultimate means of payment does seem to give the state some leverage over the economy, leverage thatshows up as a measure of control over the money rateof interest.To understandthe extent of and limits on that leverage, it is helpful to have in mind an idealized, purelyprivatefinan ...
... state money is the ultimate means of payment does seem to give the state some leverage over the economy, leverage thatshows up as a measure of control over the money rateof interest.To understandthe extent of and limits on that leverage, it is helpful to have in mind an idealized, purelyprivatefinan ...
FRBSF E L CONOMIC ETTER
... higher aggregate spending on goods and services produced in the U.S. The increase in aggregate demand for the economy’s output through these different channels leads firms to raise production and employment, which in turn increases business spending on capital goods even further by making greater de ...
... higher aggregate spending on goods and services produced in the U.S. The increase in aggregate demand for the economy’s output through these different channels leads firms to raise production and employment, which in turn increases business spending on capital goods even further by making greater de ...
Answers to homework questions
... Money is defined as whatever a society uses as its medium of exchange. The U.S. money supply is all fiat money. The narrowest definition, M1, includes currency in circulation plus certain demand deposits at banks and savings institutions. A broader definition, M2, includes M1 plus most savings accou ...
... Money is defined as whatever a society uses as its medium of exchange. The U.S. money supply is all fiat money. The narrowest definition, M1, includes currency in circulation plus certain demand deposits at banks and savings institutions. A broader definition, M2, includes M1 plus most savings accou ...
Economic Depressions: Their Cause and Cure
... century, alongside the industrial system. This was the institution of banking, with its capacity to expand credit and the money supply (first, in the form of paper money, or bank notes, and later in the form of demand deposits, or checking accounts, that are instantly redeemable in cash at the banks ...
... century, alongside the industrial system. This was the institution of banking, with its capacity to expand credit and the money supply (first, in the form of paper money, or bank notes, and later in the form of demand deposits, or checking accounts, that are instantly redeemable in cash at the banks ...
Start with government purchases of goods and services, and with
... produces a higher interest rate. Thus the LM curve slopes upward. The level of the interest rate depends not just on the level of national product (which shifts the money demand curve) but also on the determinants of the real money supply: the price level, the Federal Reserve policy, the currency-to ...
... produces a higher interest rate. Thus the LM curve slopes upward. The level of the interest rate depends not just on the level of national product (which shifts the money demand curve) but also on the determinants of the real money supply: the price level, the Federal Reserve policy, the currency-to ...
Slope of the Phillips curve
... “theoretical regularities.” They can be patterns that originate in the authors’ imagination, not in real-world data. The authors should build an empirical case for their claim that productivity improvements are contractionary. Thirdly, and most importantly, Why is all of the analysis focused on AS s ...
... “theoretical regularities.” They can be patterns that originate in the authors’ imagination, not in real-world data. The authors should build an empirical case for their claim that productivity improvements are contractionary. Thirdly, and most importantly, Why is all of the analysis focused on AS s ...
A Brief Exposition of the IS-MP Curves: A Replacement for the
... The world economy is today in shambles. Equally, but perhaps less consequentially, the short-run macro models used today are in crisis. This note focuses on an updated approach to the central tool of short-run macro, the IS-LM analysis and IS-LM curves. This applies primarily to the closed economy, ...
... The world economy is today in shambles. Equally, but perhaps less consequentially, the short-run macro models used today are in crisis. This note focuses on an updated approach to the central tool of short-run macro, the IS-LM analysis and IS-LM curves. This applies primarily to the closed economy, ...
Short Macro Review
... The greater the MPC, the more total output (Y), income and spending results from an initial increase in spending ...
... The greater the MPC, the more total output (Y), income and spending results from an initial increase in spending ...
Rating the Rates - Federal Reserve Bank of Atlanta
... Purchases and sales by the Fed of government securities to influence the volume of money and credit in the economy. Purchases foster expansion of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve’s most important and most flexible monetary policy ...
... Purchases and sales by the Fed of government securities to influence the volume of money and credit in the economy. Purchases foster expansion of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve’s most important and most flexible monetary policy ...
Interest Rates on Debt Securities
... How does the maturity of a security whether it is short-term or long-term affect the interest rate it carries? Does short-term debt carry a higher or lower interest rate than long-term debt (that has the same default risk and ...
... How does the maturity of a security whether it is short-term or long-term affect the interest rate it carries? Does short-term debt carry a higher or lower interest rate than long-term debt (that has the same default risk and ...
The Determination of Exchange Rate
... Interest rate Open market operations-buying and selling of government bonds Reserve ratio (for deposits in banks) ...
... Interest rate Open market operations-buying and selling of government bonds Reserve ratio (for deposits in banks) ...