Unformatted text preview: 3 million2 0 1/1/2009 More than $10.3 million to $44.4 million3 3 1/1/2009 More than $44.4 million 10 1/1/2009 Nonpersonal time deposits 0 12/27/1990 Eurocurrency liabilities 0 12/27/1990 Dr. David P. Echevarria All Rights Reserved 6 MONETARY POLICY;
CONTROLLING SUPPLY OF MONEY
A. Reserve requirements for deposit liabilities
B. Open market operations
3. Buying government securities by the Fed
Selling government securities by the Fed
Discount rate: cost of borrowing from the Fed C. Margin Requirements for Security Markets
D. I mpact on Firms of Monetary (FED) and Fiscal
2. M.P. affects the cost of [new] capital. Affects expansion plans.
Fiscal Policy; create Government demand for capital goods.
capital Dr. David P. Echevarria All Rights Reserved 7 CHANGES IN MONETARY BASE:
IMPACT ON CREDIT
E. Cash deposits create new excess reserves.
Excess reserves loaned out and new deposits created.
New deposits pe...
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- Fall '09
- Monetary Policy, Federal Reserve System, Dr. David P. Echevarria, P. Echevarria