Using T-account, explain what are differences between Federal
Reserve policy in crisis time and in normal...
Using T-account, explain what are differences between Federal
Reserve policy in crisis time and in normal times. (please to
include T-accounts in your answer)
what are the similarities and differences in the making of
monetary policy between the Federal reserve system in USA and the
european central bank during covid-19
1. What are the main differences and similarities between the
Federal Reserve system (Fed) and the European Central Bank system
(ECB).
2. Discuss the case for and the case against Federal Reserve
bank independence.
3. Explain two concepts of central bank independence. What about
the Fed?
4. Why central bank independence is important?
Explain what is meant by monetary policy. List and explain the
3 tools the Federal Reserve has to conduct monetary policy. What is
your opinion which is more effective fiscal or monetary policy?
Explain why you feel the way you do.
Right now, the Federal Reserve is pursuing a policy of
quantitative easing for the third time in the last four years. This
means introducing of billion dollars into the economy in an effort
to stimulate investment within private sector. Describe the
mechanisms the Fed uses to do this , and explain why think this
would or would not be effective at stimulating investment.
Right now, the Federal Reserve is pursuing a policy of
quantitative easing for the third time in the last four years. This
means introducing hundreds of billion dollars into the economy in
an effort to stimulate investment within the private sector.
Describe the mechanisms the Fed uses to do this, and explain why
you think this would or would not be effective at stimulating
investment.
Suppose the Federal Reserve is conducting contractionary
monetary policy using open market operations.
a.) What is happening to the money supply?
b.) What is happening to the federal funds rates?
c.) Would the Federal Reserve be buying or selling treasury
bills?
d.) What are the two main policy goals of the Federal Reserve
and for which policy goal is contractionary monetary policy best
used?
6) After the financial crisis the Federal Reserve implemented
unconventional monetary policy. Discuss the specific methods
(phases of QE etc.) used and how they impacted the markets.