Describe, in general terms, the strategy of monetary policy, explaining how monetary-policy tools are used to achieve the goals of monetary policy
What intermediate stages are important in going from tools to goals? What are the links between the different stages? How does the Federal Reserve use this strategy today?
The Fed uses its tools to influence intermediate targets that in turn affect the goal variables. The link between tools and intermediate targets is an economic relationship such as the money multiplier, which relates changes in the monetary base to changes in the money supply. The link between intermediate targets and the goal variables is an economic model. Today the Fed targets the Fed funds rate fairly directly, but watches many indicators to figure out the correct funds rate.
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The figure above shows the market for annual influenza immunizations the United States. The efficient quantity of immunizations is
A) 14 million per year. B) 10 million per year. C) Between 14 and 21 million per year. D) Less than 10 million per year. E) 22 million per year.
The use of cash for in-store purchases, declined from ________% in 1995 to ________ % in 2008
A) 50, 35 B) 60, 29 C) 80, 75 D) 48, 10
What would happen to the short-run and long-run aggregate supply curves if the capital stock grew and available supplies of natural resources expanded over the same period of time?
A federal budget deficit places a genuine burden on future generations when the
A. crowding-out effect is stronger than the crowding-in effect. B. crowding-in effect is stronger than the crowding-out effect. C. crowding-out and crowding-in effects work in opposite directions. D. crowding-out and crowding-in effects operate in the same direction.