Unit 3 - Chapter 14

Unit 3 - Chapter 14 - Macroeconomics Chapter 14 Monetary...

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Macroeconomics Chapter 14 Monetary Policy
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The Goals of Monetary Policy The Fed has set four monetary policy  goals that are intended to promote a  well-functioning economy: 1. Price stability 1. High employment 1. Economic growth 1. Stability of financial markets and  institutions
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Has the Fed Achieved Price Stability? 14 - 1 The Inflation Rate, 1952-2004
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The Money Market 14 - 2 The Demand for Money
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Shifts in the Money Demand Curve 14 - 3 Shifts in the Money Demand Curve
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The Money Market and Interest Rates 14 - 4 The Impact on the Interest Rate When the Fed Increases the Money Supply
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The Money Market and Interest Rates 14 - 5 The Impact on Interest Rates When the Fed Decreases the Money Supply
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The Fed’s usual policy target is the  Federal Funds Rate. Federal funds rate     The interest rate  banks charge each other for  overnight  loans. Targets
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The Federal Funds Rate 14 - 6 Federal Funds Rate Targeting, January 1995- July 2005
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This note was uploaded on 05/06/2008 for the course ECON 112 taught by Professor Ramirez during the Fall '08 term at E. Stroudsburg.

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Unit 3 - Chapter 14 - Macroeconomics Chapter 14 Monetary...

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