{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Banking and Monetary Policy_Butkiewicz_Date__050610

Banking and Monetary Policy_Butkiewicz_Date__050610 - 50...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 14 continued… 39: tax nominal income—after taxes will have lost some purchasing power 41: real rate- taxes then also taxed on inflation part - if inflation increases 1% point, your real return is reduced by tax rate 44: increased monetary base for 42K, 9/11 but so much more for August 08 - Nothing comes close to 08 increase in monetary base 45: Fed thinks can get base decrease without serious inflation 48: “let them run off” if assets expire decrease monetary base automatically
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 50: deflation isn’t necessarily good (example: Free Silver)-Change in debt burdens—real problem 53: liquidity trap—interest rates low to stimulate economy 55: output falls below potential, inflation decreases 61: fiscal expansion- has to have budget deficit 66: Bernanke wants to give credit to all sectors of economy Basically he told a lot of stories and people asked a lot of questions today...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online