Need to be able to discuss "monetary policy" and the US system...
Would you please help me understand monetary policy a little better? When someone refers to "monetary policy," what does that mean? I need to be able to describe the monetary system of the United States. How is it flexible in relation to economic conditions, and how does the Federal Reserve System change the supply of money ...continues
Macroeconomic study of Monetary Policy
(Several OTA's had viewed this question, but no one had accepted it yet... so I'm revising the question to be more specific in case I was too vague.) Would you please help me understand the details on monetary policy a little better? The following elements are touched on in my text, but not very descriptively: In referen ...continues
Goals of US monetary policy and their consistency
Two goals of monetary policy in the United States are price stability and full employment? Are these goals always consistent with each other? Explain with the help of the appropriate graphs.
I am not quite know what is the connection between balance of payments and elasticities approach.
Question Using your understanding of the elasticities approach to balance of payments, how might it be a useful model in discussion some aspects of IMF conditionality in developing nations.
very confused about this question. too hard. Thanks
Question Discuss the effectiveness of fiscal and monetary policies under conditions fixed and flexible exchange rate regimes, where free capital mobility is assumed.
I read in an article: "When asian banks buy government debt in the form of T-Bills, it helps keep interest rates at an all time low even as the united states has massive deficits." How? Why? Is it because the foreign investors have to buy american dollars in order to invest in american t-bills, which increases the exchang ...continues
-------------------------------------------------------------------------------- If the monetary authority wants to stimulate an economy in a recession, it often reduces interest rates, and if the inflation rate is low, as it has been in the early part of the current decade, these interest rates can become very low. How effecti ...continues
In a monetary policy designed to slow inflation, what are the risks to other macroeconomic measures such as real GDP and unemployment? How can the monetary authority mitigate these risks?
Suppose the federal reserve purchased gold or foreign currency, how would this purchase affect the domestic money supply?
Foreign Exchange Rates and portfolio adjustments
This question regards international finance specifically the asset market model and exchange rates. Assume the spot exchange rate between dollars and yen is e=$1/100yen. The interest rate on a 180 day dollar denominated assets is i($)=1% and the interest rate on comparable 180 day yen denominated assets is also i(yen)= 1%. T ...continues
