StudentShare solutions
Triangle menu

Macroeconomics Discussion - Essay Example

Not dowloaded yet

Extract of sample
Macroeconomics Discussion

Money supply is the money circulating in the economy which is created by the FED, the depositors, and investors.
Each of the 12 Federal Reserve banks perform the following: a. clear checks; b. issue new currency; c. withdraw damaged currency from circulation; d. administer and make discount loans to banks in their districts; e. evaluate proposed mergers and applications for banks to expand their activities; f. act as intermediaries between the business community and the Fed; g. examine bank holding companies and state-chartered banks; h. collect data on local business conditions; i. use their staff of professional economist to research topics related to monetary policy (Mishkin 369- 370).
The money supply can be changed by increasing our deposits held by banks. This money creates a repercussion of effects in the economy when borrowed by companies who use this for their operations. Through the money multiplier, the invested money could increase employment an output more than its actual value.
(3.) You are appointed as the chair of FRB. Congratulations! Chair, economy is in recession what are the policy measures you will undertake to push GDP toward potential GDP What are the problems of implementing monetary policy in practice
Under an expansionary policy, the central bank must increase the money supply and lower the short- term interest rates. The Fed can engage in the following: a. open market purchase which expands reserves and monetary base; b. lower the discount rate which encourages borrowing by banks; or c. lower the reserve requirements among banks.

Part Three: write a few sentences summarizing what you have learned and how learning this will help you personally. :) Thanks!!

The most important thing which I have learned so far is the interdependence of the players in an economy. It is very important to note that the action of one player can have a tremendous effect in other sectors. Learning the functions of money, how money is controlled and managed, and how it can be used to stimulate or slow down the economy is really something very interesting to me. Knowing that my actions can influence the economy, I can now align my decisions in order to help the FED to achieve its economic goals. This is very important noting the forecasted downturn in the US economy in the coming future.

Part Four:What is money supply, M1 and M2 which definition of money supply is more liquid and why

M1 is the narrowest measure of money which includes currency, checking account deposits and travelers checks. The M2 includes the M1 plus other assets that have check-writing features such as small-denomination time deposits, ...Show more

Summary

Money is produced by the economy's central bank designed for facilitation of transactions among individuals. Money is only valuable because of its purchasing power. Money is a store of value because it can be exchanged for goods and services.
Ben Shalom Bernanke is currently the Chairman of the FED…
Author : elyssaabbott
Macroeconomics Discussion essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Macroeconomics Discussion"
with a personal 20% discount.
Grab the best paper

Related Essays

Intermediate Macroeconomics
This paper will specifically discuss merits and demerits of both fixed and floating exchange rate regimes. According to the paper the most notable advantage of fixed exchange rate is that this condition avoids currency fluctuations and related currency losses. Hence, fixed exchange rate would assist an organisation to get rid of the troubles associated with unexpected global financial market fluctuations.
6 pages (1500 words) Essay
Macroeconomics
Industry A has 20 firms and a Concentration Ratio (CR) of 20%. Industry B has 20 firms and a Concentration Ratio of 85%. Addressed in the paper are the names of these industry types, characteristics inherent, potential long run adjustments and implications of the anticipated adjustments.
4 pages (1000 words) Essay
The differences between macroeconomics and microeconomics
This essay focuses on the identification of the core differences between microeconomics and macroeconomics. The difference between two fields of economics is primarily related to aggregation. In microeconomics, the decisions of individuals are studied: macroeconomics considers the impact of aggregate decisions of individual agents on the economy
5 pages (1250 words) Essay
Macroeconomics and unemployment
It is within Macro economics that unemployment rate is discussed. There are two policies in macro economics that determine to explain unemployment and they are fiscal and monetary policies. Discussion Macro economics as field in economics has its roots from business cycle theory and monetary theory.
3 pages (750 words) Essay
Macroeconomics of my own life
Focus would be on demand, supply and market equilibrium, aggregate supply, the financial panic of 2008, gross domestic product, economic growth and unemployment. The gas industry is one of the key industries globally as it provides the energy source necessary for carrying out activities in the other sectors of the economy.
4 pages (1000 words) Essay
Macroeconomics
explaining crowding-out using either the IS-LM or the Philips’s curve and to show how it affects the economy as it is used as a tool for achieving economic objectives of monetary and fiscal authorities. To achieve this objective, the IS/LM model will be employed to see how
6 pages (1500 words) Essay
Macroeconomics
The actual or realized expenditure is the amount households, firms and government spend on goods and services, i.e. GDP (Y), while planned expenditure (E) is the amount they would like to spend on the same goods and services. Now the three major determinants
4 pages (1000 words) Essay
Macroeconomics
On the other hand South Korea recorded the most impressive growth in its livings standards since 1960 because it posted a growth of 1304.5%, while the United States posted a growth of 166.2% since 1960. In
1 pages (250 words) Essay
Macroeconomics
There are several macroeconomic variables like the rate of interest, the national income, the savings and spending rates and the existence of trade in the country, that are have their effect on these indicators. These indicators and their relationship with the
10 pages (2500 words) Essay
Macroeconomics Creative Project
In some cases, conflicting opinions always arise on the grounds of what perceived as personal life, morally just of societal order. Most of our activities in personal life are considered social
3 pages (750 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation