Banking and Monetary Policy_Butkiewicz_Date__050610

Banking and Monetary Policy_Butkiewicz_Date__050610 - 50:...

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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
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Unformatted text preview: 50: deflation isnt necessarily good (example: Free Silver)-Change in debt burdensreal problem 53: liquidity trapinterest 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...
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This note was uploaded on 08/29/2010 for the course ECON 302 taught by Professor Abrams during the Spring '08 term at University of Delaware.

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