massign6 - Money and Banking N. Sheflin ASSIGNMENT 6 NOTES:...

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Money and Banking N. Sheflin ASSIGNMENT 6 NOTES : How money is created and controlled, the Fed’s balance sheet and why it matters, how the Fed conducts monetary policy, how the Fed, Banks, and Public interact in the money supply process, how the market for bank reserves works and how the Fed influences interest rates. INVESTMENT GAME ROUND 2 – efficient markets, random walks, etc. ONLINE MIDTERM –Week of 3/7 – Must be taken in 1 hour window during the period from Tuesday 3/8 6pm and Thursday 3/10 6pm . COVERS weeks 1-7 in 50 multiple choice questions more or less randomly drawn from hw 1-7. READING Croushore chapter 16. Go lightly on the derivations and detailed t-account/balance sheet material but make sure you understand the punchlines. Also, DeLong on the Fed’s Balance sheet and money supply and recent new items on the sheet. http://www.econbrowser.com/archives/2008/12/federal_reserve_1.html (skim the material after the second chart). NOTES: when Delong talks about ‘cash’, he also means checking account balances; This was written in December 2008 when the financial crisis was in full bloom – many changes since then. Bernanke on the Fed’s Balance Sheet http://www.federalreserve.gov/newsevents/speech/bernanke20090403a.htm a bit complicated but we will go over some of this together. And money supply http://www.ny.frb.org/aboutthefed/fedpoint/fed49.html And the Fed Funds Market http://www.newyorkfed.org/aboutthefed/fedpoint/fed15.html And how currency gets into circulation http://www.ny.frb.org/aboutthefed/fedpoint/fed01.html (if you want, you can also look at currency and check processing fedpoints). KEY POINTS
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This note was uploaded on 10/11/2011 for the course ECON 336 taught by Professor Hassan during the Spring '08 term at Rutgers.

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massign6 - Money and Banking N. Sheflin ASSIGNMENT 6 NOTES:...

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