Unformatted text preview: security cost push inflation - AD demand pull inflation - AS Regan same price level, produce more 1.cut tax(4) - shift AS 2.autonomous spending - AD problem - debt money divisible, protable, durable, stable(difficult to copy) commodity money - have own intrinsic value fiat money - dont m1 - currency, checking account, traveler check m2 - m1. saving account, money market account, certificate of deposit ms(monsy supply)=mb(money base)*(1/RRR required reserve ratio) federal open market committee 7 board of gov, NY fed president, 4 rotating fed president meet every 6 weeks, set monetary policy, use moey to affect economy propose of fed reserve bank 1.crate uniform currency 2.a lender of last resort 3.bank of the bank 4.print money 5.supervice 6.monetary policy P(bond) r expensionary montary policy s, ms, r contractonary monetary police recession - fed buy bond - MB - MS - r - I - AE - AD inflation...
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This note was uploaded on 02/12/2014 for the course ECON 102 taught by Professor Muze during the Fall '11 term at University of San Francisco.
- Fall '11
- Class Notes