3323ch18

3323ch18 - - Simultaneous achievement of all goals not...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 18 Who's In Charge Here? FEDERAL RESERVE Fed's Long Term Goals : Full employment Economic Growth Stable Prices Stability in Balance of Trade Equitable distribution of income & wealth Efficiency Full Employment - What is it? - Natural unemployment rate - Why higher rate of unemployment - Why want full employment Economic growth - Define - How grow? Increase productivity - labor - capital - Benefits of faster economic growth - Cost Price Stability - define - Cost of higher prices - who gains - who losses International/ Balance of Trade - define - finance continuous buying--impact - lower the price (exchange rate) - sell assets owned - borrow - fixed/floating rate Equitable distribution of income/wealth - define - ultimate achievement of distribution (U. S.) - marketplace - govt expenditures - income tax systems - Survey Results: Efficiency - define - market place
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Responsibility for Goals - Employment Act 1956 - vague - Full Employment and balanced Growth Act of 1978
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: - Simultaneous achievement of all goals not possible Economic Policy - purpose - Type of U. S. policies - Monetary - Fiscal - Income - Debt Antitrust Composition of Federal Reserve Central Bank Primary Responsibilities Promote conditions to achieve the LT goals Protect the soundness & efficiency of the banking system Compromise Structure of each Board of Governors Regional Reserve Banks Federal Open Market Committee Function of each Board of Governors Regional Reserve Banks Federal Open Market Committee Tools of the Fed-Monetary Policy (those that change the aggregate supply of money) Discount Rate Open Market Operations Required Reserve Rate Independence of the Fed Staggered terms Bond portfolio No second terms 14-year terms Power of Fed Much lies with the Chairman (term is 4 years) Other six members of the Board have also much to say about monetary policy Informal Power Structure Boards professional staff of economists and advisors (very long tenure) FOMC...
View Full Document

This note was uploaded on 07/09/2011 for the course FIN 3233 taught by Professor Frohlich during the Spring '11 term at UNF.

Page1 / 2

3323ch18 - - Simultaneous achievement of all goals not...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online