StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

US monetary policy - Term Paper Example

Comments (0) Cite this document
Summary
Federal reserve is represented by private monopolies which make money derived directly from the people of the United States for the benefit of themselves and their foreign customers, foreign and domestic speculators and swindlers, and rich and predatory money lenders…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.3% of users find it useful
US monetary policy
Read TextPreview

Extract of sample "US monetary policy"

Download file to see previous pages When the Fed wants to “expand the money supply” (create money), it steps in and buys bonds from these dealers with newly-issued dollars acquired by the Fed for the cost of writing them into an account on a computer screen. The Federal Reserve is overseen by board of governors based in Washington, which is a government body (Solomon 1996). This board of governors comprise of 7 members appointed by the president of the United States of America, each of them has the capacity to serve for 14 years. All this members must pass through senate for confirmation and are eligible for reappointment. The chairman is the head of the board being deputized by the vice chairman. Both the chairman and deputy are appointed by the president and must pass through senate for approval (Solomon 1996). Ben Bernanke is the current chairman; he took over from Alan Greenspan. The most common tool used by the Federal Reserve is the buying and selling of government securities in order to increase or reduce the amount of money in the banking system and this is done through an open market (Timberlake 1993). When they buy securities, they pump money into the banking system and accelerate growth while sales of securities siphon money from the system. Federal Reserve's aim is to use this technique to adjust the federal funds rate, that is, the rate at which banks borrow from each other (Timberlake 1993). ...
the ones required by the law or rather set by the Federal Reserve board of governors can use the money to bring those changes back to stability (Timberlake 1993). The board of directors of each reserve bank sets the discount rate every 14 days. It's considered the last resort for banks, which usually borrow from each other. The Fed uses the discount rate to check the supply of available funds, which will in effect have impact on inflation and in extension interest rates (Degen 1987). If the available money is abundant, there is more likelihood of inflation occurring. It will become more expensive to borrow from Federal Reserve if interest rate is increased. Short term interest rate will, therefore, be increased by lower supply of money and the opposite is true. Quantitative Easing” (QE) is a kind of operations within markets that assist the Federal Reserve achieve its policy targets (Degen 1987). QE involves open market operations that are not different from the way the Federal Reserve often operates in its quest to attain certain policy objectives. When Federal Reserve changes their target interest rate, it is doing so in order to involve open market operations that alter reserves in the banking system so as to get to its preferred rate.   Open market operations often include moves such as adjusting the existing reserves in the banking system so as to assist reaching a target interest rate. Many people believe that QE operates to achieve its objectives in ways that are different from standard monetary policy, e.g. influencing demand for loans, the wealth effect and interest rate channels (Wells 2004). Much of the misconception is also due to the untruth that QE helps to fund the US government or is equivalent to “money printing”.  This is not true. The main ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“US monetary policy Term Paper Example | Topics and Well Written Essays - 750 words”, n.d.)
US monetary policy Term Paper Example | Topics and Well Written Essays - 750 words. Retrieved from https://studentshare.org/macro-microeconomics/1464309-us-monetary-policy
(US Monetary Policy Term Paper Example | Topics and Well Written Essays - 750 Words)
US Monetary Policy Term Paper Example | Topics and Well Written Essays - 750 Words. https://studentshare.org/macro-microeconomics/1464309-us-monetary-policy.
“US Monetary Policy Term Paper Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/macro-microeconomics/1464309-us-monetary-policy.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF US monetary policy

General Electric Long Term Financing Policy

The tagline of the company is becoming “bringing good things to life” (“General Electric” n.d.).
Concerning the situation, in this paper, I would like to discuss three sections of General Electric issues. Section 1 is about the company’s long term financing; Section 2 is concerning risk management; and Section 3 is about a synergistic acquisition, which is suitable for General Electric.
In today’s business practices, investors or managements often face a dilemma. At one occasion, they need to develop their business in order to sustain growth but on the other hand they have limited budget to invest. Under such circumstances, a company should consider loan option or use their own money r...
12 Pages(3000 words)Case Study

D.H. Lawrence and Other Views on Death - How They May Help Us Deal with Death in Context to Healthcare

Lawrence graduated from University College, Nottingham in 1908, devoted himself for a time to teaching at a boy’s school, but not long after, decided to quit teaching and spend his time at freelance writing instead. In March of 1912, he met and fell in love with a married woman, Frieda Weekley, nee Richthofen; then six weeks later eloped with her to the Continent.

Frieda was a sister of the famous German World War I flying ace and wife of Lawrence’s French professor at Nottingham. This elopement marked the start of Lawrence’s lifetime war with existent moral standards as well as the beginning of a continuous wanderlust prompted by Tuberculosis which induced him to seek warmer and more healthful climes....
9 Pages(2250 words)Essay

Has Bush Pursued a Realist Foreign Policy

This discussion will address what will define the entire Bush Presidency, not simply the foreign policy aspect; the illegal, immoral and unrealistic decision to invade Iraq.
The ‘War on Terrorism’ as it is commonly referred to, was a phrase coined by United States government officials and is primarily used to justify the military initiative de jour. It is generally defined as the current conflict between the U.S. and radical Islamic factions with Great Britain being somewhat allied in the effort (Gallington, 2004). Immediately following and as a reactionary response to the 11 September 2001 terrorist attacks on America, Bush stated the country’s intent to initiate a ‘War on Terrorism.’ He charact...
9 Pages(2250 words)Assignment

The Controversies in the Death Penalty in the US

In 2003 Amnesty reported 1,146 executions in 28 countries, 88% of them in just 5 countries: The People’s Republic of China 726, Iran 108, the U.S. 65, Vietnam 64, and Saudi Arabia 52 (Netipedia.com, 2006). The U.S. went on to carry out 59 executions in 2004, 60 in 2005, 53 in 2006 and 11 until March 2007 (Death Penalty Information Center, 2007). Today, the death penalty has been abolished in the vast majority of democracies in Europe and Latin America, while it is still retained in most democracies in Asia and Africa, the U.S., Guatemala, and the countries of the Caribbean (Netipedia.com, 2006).

As on April 2, 2007, there were 38 states in the U.S. with the death penalty and 12 without. Between 1976 and 2007 there...
14 Pages(3500 words)Case Study

Putins Foreign Policy Changes during His First Presidential Term

Our world, since its ‘origination’ has been a ‘hotbed’ of activity. Activity in the sense, we humans have been showing activeness both mentally and physically, which have transformed our globe from a primitive one to an advanced one. The activities are normally carried out by humans, organizing or segregating themselves into different countries or nations. It is common knowledge that for a country to reach the top echelons, its leader has to be very capable and strong. That is, a capable and strong leader will only be able to provide a better life and future for his/her country and its citizens. From time immemorial, the success or failure of a country depends on the role, the leader plays. The leader is th...
82 Pages(20500 words)Dissertation

United States Foreign Policy from 1945-1991

American Presidents presiding over some key events in history, such as the Cuban Missile Crisis, The Cold War, The Vietnam War, etc., were hindered from acting as public representatives due to pressure from the military-industrial complex. John Kennedy, Lyndon Johnson, Ronald Reagan, George Herbert Walker Bush, and George W. Bush – all of them were subject to these opposing interests. But eventually, the corporate-government nexus proved too powerful; and in this sense, American Presidents after the Second World War were largely restricted and powerless to uphold their higher personal values. Most of the strategic moves on part of the United States after the end of the Great War were directly in response to an anticipated th...
11 Pages(2750 words)Essay

How Does the US Media Effects Evolve in Singapores Current Media

Lewis and Slade (2000, p. 223) in their critical evaluation of the effects of media communication on the audience argue that media effect is achieved incongruent with social context. Their study recounts the experiment on the influence of television on identity in Singapore indicates that US social values and Singaporean values greatly differ from each other. The sharp differences in program content have a negative influence on the audience because Chinese raised Singaporeans value marriage, social values, and collectivism whereas US social culture involves career, family and the struggle to balance the two. Therefore the question of US media's influence to destabilize Singaporean national identity is limited. This view is emphasi...
6 Pages(1500 words)Assignment

Information Security Policy of Organization

In the modern age of information technology, there are many threats created for organizational information. Organizations need a security model that has the capability to handle and secure our information reserves. Technical administrative safety /security measures like security plans, actions and procedures are the general practices for the organizational information security procedures. The attentiveness of producing actions is concerned by the organizations to an appreciably smaller level, on the other hand at the same time these are weighed up as being further efficient organizational actions than technical administrative ones. Information security encompasses organizational features, officially authorized aspects, institution...
6 Pages(1500 words)Research Paper

Identification of problems in the Criminal Justice System of the US

They are on trial and will be dealt with fairly. These laws ensure that no one, even if he or she has committed a crime is abused or punished cruelly.
Following the history of civilization like in china, we see the traces of systems for Criminal justice in order to provide safety for the citizens. Evolving through the years laws have been modified and changed to form the system that we know today.
 From its start, the “U.S. criminal justice system” has advocated the idea of “checks and balances”. To avoid dictatorial rule, the people who founded this system in such a way that one person was not given control or authority completely to punish the criminals. The idea of assigning a ‘jury...
6 Pages(1500 words)Assignment

European Union Policy: Turkey

...Running Head: European Union.... Topic: European union policy Order#: 377392 Topic: European union policy Profile of Turkey-history, geography and population: “Area: Approx 780,000 sq km (300,000 sq miles) Population: 71.9m (July 2008 est) Capital city: Ankara People: Majority Turks. Minorities recognised under the Turkish Constitution: Jews, Armenians and Greeks. Other ethnic peoples include Kurds, Circassians and Bosnians. Language: Turkish (official), Kurdish Religion: Muslim Currency: Turkish Lira (TL) Government: Parliamentary republic. Membership of international...
9 Pages(2250 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Term Paper on topic US monetary policy for FREE!

Contact Us