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