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January 12th Agenda CBM In the News
January 12th Agenda CBM In the News

... and Monetary Policy • Fiscal Policy: Government policy regarding taxing and spending • Monetary Policy: The FED policy aimed at regulating amount of money in circulation and interest rates • Before 1930, government rarely intervened in the economy – good or bad times included ...
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... How are M1 and M2 different? How is the FED organized, and how does each part function? How does a lose money policy differ from a tight money policy? How does each monetary policy tool expand or shrink the money supply? What might the fed do to effect interest rates, and what is the main tool? Know ...
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... • Receive direct deposit for paychecks. • Use more checks instead of cash. • Rely more on debit cards for transactions. • Complete many transactions via direct wire transfer of money. LO-2 ...
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...  A bank may use excess reserves to give depositors their money back if they demand it.  Most large money transactions involve ledger entries rather than the movement of physical currency.  A dollar bill represents an obligation of the government of a guarantee to accept it for payment of taxes an ...
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... consists of paper currency 110,2 mld., demand deposits 321 mld., time deposits 504,8 mld and the value of final production is 1205,5 mld. ...
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ECON 404: Lecture on Deflation

... • Supply-led deflation: LRAS increases, real GDP increases but P decreases. Depending on slope of SRAS, P may not fall much, and SRAS shifts down when expectations adjust. Inflation: • Inflation is primarily a monetary phenomenon, especially in the long-run: monetary authorities create new money by ...
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Economics: Module 4 Note Taking Guide

... A decreasing reserve req. = banks keep ______ $ in vault = banks loan _______ $ to people. An increasing reserve req. = banks keep ______ $ in vault = ________ loans available to people. Open Market Operations ______________________________________________________________________ Buy bonds = FED ___ ...
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Macro Last Minute Review Student Blank

... During the normal business cycle, one moves points on If there is a supply shock, then move Phillips’ initial analysis assumed an inverse relationship between If you move the LRPC, then a nation must change its The SRPC and the SRAS line move in Monetarism MV =PQ Conservative monetarists believe tha ...
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... monetary policy is the best method of ensuring economic growth and stability.  ...
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... government services always hit the poor harder than the rich. So posttax and post-benefits income distribution becomes even worse. ...
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POLS 306

... • Quantitative easing is a euphemism for creating money out of thin air. In the vernacular, we call it "printing money," even though it really has nothing to do with the U.S. Bureau of Engraving and Printing. • The way it's supposed to work is that the Fed buys securities in the open market, paying ...
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... adjustment and the balance of payments • Many of these predictions are contrary to those of the simple Keynesian model, which neglects the effects of changes in the money supply • According to MABP, credit creation by the central bank to stimulate the economy may be thwarted by an outflow of capital ...
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Fiscal and Monetary Policy

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The Federal Reserve

... – Discount rate: interest rate Fed charges banks (currently 0.75%) • Conducts Monetary Policy – regulates money supply to control short term interest rates – Federal Funds Rate: interest rate Fed sets (currently 0.0%) ...
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Helicopter money

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