Macroeconomics Discussion - Essay Example

Only on StudentShare

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. ...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
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

Macroeconomics-Oil Prices Relationships
This essay focuses on the determination of the quantitative correlation between oil prices and macroeconomic conditions of an economy. Three models for understanding the impact of oil price fluctuations were assessed in the essay. The AS/AD model has been chosen in preference to those developed by Mankiw and Blanchard and Sheen
10 pages (2500 words) Essay
Macroeconomics. Unexpected changes in the money supply
With other parameter configurations, the response of flexible nominal prices to a monetary disturbance is sufficiently large that the change in real money balances is small, as are monetary effects on the real economy working through the standard Keynesian transmission mechanism.
15 pages (3750 words) Essay
Macroeconomics (inflation)
The aim of the paper is to discuss the process of international transmission itself and examines the interrelations between dispersion of national inflation rates and transmission. According to Wickens (2998) the greater prevalence of increases in national price levels and a convergence of their rates of increase suggest that international transmission has increased.
6 pages (1500 words) Essay
Macroeconomics
The Economists Dictionary of Economics describes Macroeconomics as "The study of whole economic systems aggregating over the functioning of individual economic units. It is primarily concerned with variables which follow systematic and predictable
7 pages (1750 words) Term Paper
The Business Cycle and Macroeconomic Objectives
The business cycle and the circular flow of income in the markets has been an essential element of economies for years. An economy runs based on the funds that are available in the markets at all times.
6 pages (1500 words) Term Paper
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
Find out how much would it cost
to 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