Monetary Policy

intervention in an economy through central bank actions with the goal of decreasing economic growth

the interest rate on loans the Federal Reserve makes directly to banks to meet temporary shortages of reserves

intervention in an economy through central bank actions with the goal of increasing economic growth

rate charged for loans of excess reserves between banks to meet reserve requirements

the central bank and lender of last resort in the United States

government intervention in the economy through spending and tax policies

extreme inflation in which prices spiral out of control as supply cannot keep up with demand

delay between the implementation of a policy and the effects of that policy

delay between the recognition of a problem and the implementation of policy

at very low interest rates, the result that monetary policy becomes ineffective because increases in the money supply have no effect on interest rates

intervention in an economy through central bank actions, such as adjustments to interest rates, reserve requirements, and open-market operations

rate at which the amount of money in an economy grows

a financial asset backed by mortgages that can be traded

process through which the Federal Reserve buys Treasury bills to expand the money supply or sells Treasury bills to contract the money supply

situation in which a central bank uses money it creates electronically to purchase long-term securities in order to introduce more money into the economy

delay between the emergence and recognition of a problem

theory that suggests that interest rates are determined by the supply and demand of money

a security issued by the U.S. Treasury Department representing a short-term debt obligation, with a relatively low interest rate and a maturity period of less than a year