Note #5 - ECON 133 Securities Markets Lecture 5 Jia-Yuh...

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ECON 133 Securities Markets Lecture 5 Jia-Yuh Chen August 5, 2009
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Investment of the Day I I I Di/erent prices for the same issuer I New comer to bond market
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Origin of Central Banks I Bank of England (1694) I Gold standard and paper money I ECB (1999) I Much at stake in current crisis
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Federal Reserve System I History I Goal I Stability in the price level I I High employment/economic growth I Stability in foreign exchange rates
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I Money supply and interest rates I The loanable funds theory I Liquidity e/ect I Income e/ect I Price expectation e/ect I Interest rates a/ect economic growth through investment and consumption I Monetary policy tools I Reserve requirement I Open market operations I Discount rate I What happens if the interest rate is zero? I Monetary aggregates
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Independence I I I I Paul Volker and Ronald Reagan I Independent institution I In&ation targeting
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The Current Crisis I The Great Moderation I Asset bubbles I A test on macroeconomic theories
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Investment of the Day II I Junk bonds I High return and high risk
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This note was uploaded on 04/07/2010 for the course ECON 133 taught by Professor Chen during the Summer '09 term at UCSC.

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Note #5 - ECON 133 Securities Markets Lecture 5 Jia-Yuh...

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