StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Nobody downloaded yet

Economics; Policy Recommendation-FOMC - Term Paper Example

Comments (0) Cite this document
Summary
This work called "Economics; Policy Recommendation-FOMC" focuses on the aspects of the Federal Open Market Committee. The author outlines controlling the credit and availability of money in the economic system for assisting and supporting the goals of the economy…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.1% of users find it useful
Economics; Policy Recommendation-FOMC
Read TextPreview

Extract of sample "Economics; Policy Recommendation-FOMC"

Download file to see previous pages The 1913 Federal Reserve Act has given the Fed the liability for setting monetary policy for the country.
There are three measurement tools of the Fed through which it manages the monetary policy. These are- (i) open market operations, (ii) the discount rate, and (iii) reserve requirements. The FOMC is accountable only for open market operations. On the other hand, the Board of Governors of the Federal Reserve System controls discount rate and reserve requirements operations. Manipulating these three policy tools, the Federal Reserve influences, and controls the demand for money and supply of money in the economy. In this way, the Fed maintain the balances at Federal Reserve Banks, which the depository institutions hold. In this way, the Fed adjusts and modifies the federal funds rate, which is nothing but the interest rate from time to time, and when required. (FOMC).
Any changes in the rate of interest or the federal funds rate by the Fed, in turn, results in a lot of movements in the economic parameters, such as the liquidity amount of money and availability of credit in the economy, changes in other short-term interest rates, long-term interest rates, foreign exchange rates, etc. Eventually, these changes result in affecting the change of the economic variables regarding output, growth, employment, prices of goods and services, etc.
From the December 2009 meeting of the Federal, Open Market Committee there emerged some suggestions regarding future policies. It was argued in the policy prospect that there will be taken supportive economic activity for strengthen the economy. The committee has anticipated a high reduction in the weakening of the labor market. Though household spending is growing and getting higher at a reasonable rate it is expected to continue guarded by the dwindling of the labor market, humble growth of income, poorer housing assets, and a policy of tight credit. Business expenditure seems to increase on the ground of software, tools, and equipment. However, structural investment is toning at the best. Employers appear to stay unwilling to add to payrolls. Stocks of inventory by the firms have been considered in a better arrangement with sales. When lending by commercial banks persists to contract, the condition of the financial market still stay helpful, sympathetic, and encouraging to economic growth. As the crisis has not been completely evaporated, the velocity of the economic improvement is expected to be reasonable for the present time. In the context of stabilization of prices, the Committee is hopeful of a slow but stable return of the utilization of the resources to the higher levels. It has been expected by the committee that the inflationary pressure is likely to be quiet, at least for the time being with the stability of the long-run inflation expectation and with the continuation of the significant resource sagging to control cost pressures. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Economics; Policy Recommendation-FOMC Term Paper, n.d.)
Economics; Policy Recommendation-FOMC Term Paper. https://studentshare.org/macro-microeconomics/1735145-economics-policy-recommendation-fomc
(Economics; Policy Recommendation-FOMC Term Paper)
Economics; Policy Recommendation-FOMC Term Paper. https://studentshare.org/macro-microeconomics/1735145-economics-policy-recommendation-fomc.
“Economics; Policy Recommendation-FOMC Term Paper”. https://studentshare.org/macro-microeconomics/1735145-economics-policy-recommendation-fomc.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Economics; Policy Recommendation-FOMC

Economic Policy Recommendation Unemployment

...Economics Policy Recommendation-FOMC... Economics Policy Recommendation-FOMC... Running head: ECONOMIC POLICY RECOMMENDATION Economic Policy Recommendation – Unemployment There are several economic problems prevailing in the US and in the entire world. Poverty, unemployment, inflation, loss of aggregate output from the current flows of economic activities have been disturbing economic structures of all the countries of the world. The developed countries, such as USA, UK, Japan, Australia etc. are also suffering from these broad economic problems. In the face of global financial crises of 2007-08 and 2010-11, those economic problems are getting augmented and countries all over the world are suffering from severe financial and monetary problems...
9 Pages(2250 words)Essay

Economic Policy Recommendation

...Economics Policy Recommendation-FOMC... Economics Policy Recommendation-FOMC... Economic Policy Recommendation of Unemployment Introduction Unemployment is the inability of willing workers to secure gainful employment. It can be expressed as a percentage of the total available workforce. The degree of unemployment in a given country is an indicator of an economic problem. Unemployment levels vary from country to country depending on the economic conditions and other circumstances. The problem of unemployment is a worldwide issue that is felt by both developed and developing countries. US, England, Germany, Italy and France are also faced with this economic problem (John, 2010). Unemployment can be divided into two; voluntary and involuntary...
11 Pages(2750 words)Term Paper

Economics Policy Public Goods

...Economics Policy Recommendation-FOMC... Economics Policy Recommendation-FOMC... Policy: Public Goods Faizan Rahman This paper explores three related questions about price-excludable public goods, or merit goods. All the three questions are explained in detail and the second question is carefully explained through a diagram of marginal social and private benefit. Question A: If a price-excludable public good, like education, is provided only by the private market, will there be an optimal amount that will be provided Why or why not Education is a mixed good, which is non-rivalrous in nature, but can be excluded by setting a price. These types of goods can be provided by both the private and public sector. Consumption of education would...
2 Pages(500 words)Essay

Economics of policy issues

...Economics Policy Recommendation-FOMC... Economics Policy Recommendation-FOMC... of an economic transaction is an impact on a party that is not directly involved in the transaction. In such a case, prices do not reflect the full costs or benefits in production or consumption of a product or service. Externalities are often negative effects created by a party who has taken an action over those are not involved in this action. Traffic Congestion Similarly is an Externality, those people because of who the traffic jam or traffic congestion is taken do not take into account the problems it has created for other car that has been stuck into the jam and only calculate or look at the problems they bear due to the jam. As a result these traffic...
16 Pages(4000 words)Essay

Canadian public economics policy

...Economics Policy Recommendation-FOMC... Economics Policy Recommendation-FOMC... In Canada, government spending is the highest contributor to gross domestic product (GDP). In 2000, it constituted 42.6 percent of GDP -an increase from only 18.7 percent in 1950, based on 1997 real terms. This measure, however, is not a reliable measure of the size of government because it cannot capture the full extent of government influence. GDP, defined as total domestic value of expenditures in domestically sold goods and services, accounts for household consumption, investments, government spending, and net exports. While this measures the total economic activity in a country, it cannot predict the behaviour of all economic actors, making it an imperfect...
3 Pages(750 words)Essay

Prison Term Policy Recommendation

...Economics Policy Recommendation-FOMC... Economics Policy Recommendation-FOMC... Term Policy Recommendation Policy Recommendation The question over the effectiveness of longer prison terms as penalty for armed robbery is a complex situation. The question is not a single query, but several. It includes how affective current prison terms are, how definite the effectiveness of longer terms will be, and what are the cost/benefit variables. Can longer sentences act as a deterrent? If so, can the state government afford such longer sentences? These are all facets that affect the policy. According to the Boston Globe, tougher prison sentencing is going to increase the nation’s already high prison population. Within the next five years, it i...
3 Pages(750 words)Essay

Economics USA: Fiscal Policy

...Economics Policy Recommendation-FOMC... Economics Policy Recommendation-FOMC... The focus of this presentation is how governmental fiscal policy can manipulate the current of the American economy. The focus is especially on the economic theories of John Maynard Keynes and how those theories set the underpinnings for fiscal policy from the 1940s through the 1960s. Fiscal policy can exert an influence on the overall economic fortunes of a national economy primarily through the manipulation of spending programs and taxes. This forms the crux of the two warring overall perspectives on government and economy that are constantly being debated: how much governmental influence into the open marketplace should be allowed. To extrapolate this concept...
2 Pages(500 words)Essay

Contemporary Policy Environmental Economics

...Economics Policy Recommendation-FOMC... Economics Policy Recommendation-FOMC... UK CAN ACHIEVE THE TARGET OF ACHIEVING 20% OF ITS ENERGY NEEDS FROM RENEWABLE ENERGY SOURCES? – AN ANALYSIS. TABLE OF INDEX S.No HEADING PAGENO 1 CHAPTER ONE -EXECUTIVE SUMMARY 5 2 CHAPTER TWO -INTRODUCTION 6 3 AIMS AND OBJECTIVES OF THE STUDY 8 4 PROBLEM STRUCTURE OF THE REPORT AND THE APPROACH TO THE PROBLEM. 8 4.1 Do you think this normative approach is necessary or the market will ensure proliferation of renewable energy as the fossil fuels get depleted and energy demand rises? 8 4.1.1 Social Cost-benefit analysis 8 4.1.2 Discount Rate 10 4.1.3 Impact Pathway 11 4.1.4 Fluctuating price for fossil fuels 11 4.1.5 Chapter Conclusion 12 4.2 Describe the initiatives th...
16 Pages(4000 words)Essay

2014 FOMC Meetings

...Economics Policy Recommendation-FOMC... Economics Policy Recommendation-FOMC... FOMC Meetings Introduction The FOMC meeting takes place in Washington DC. The Members supposed to be in attendance are, the seven governors, the twelve Reserve Bank Presidents, Secretary of the FOMC, Boards Director of the Research and Statistics Division and the Deputy, Monetary Affairs and International Finance Divisions directors. The meeting starts with the approval of the previous meeting minutes. After approval, the chair directs participants to the agenda of the day where agenda number one is a report by the manager of System Open Market Operations. The report is usually in foreign currency and Domestic Open Market Operations. After discussion and questions...
12 Pages(3000 words)Essay

Economics Perspectives and Policy

...Economics Policy Recommendation-FOMC... Economics Policy Recommendation-FOMC... Head: ECONOMICS PERSPECTIVES AND POLICIES Economics Perspectives and Policy of the of the Economics Perspectives and Policy Macroeconomics and Microeconomics The field of Economics has two branches that are microeconomics and macroeconomics. The learning of the whole economy in the world is called Macroeconomics, including inflation rate, business cycles, business growth and the rate of unemployment. On the other hand, Microeconomics is the study of individuals and how their choices influence the flow of the economy. (Giannetti, 2003, 190) Microeconomics and Macroeconomics are linked with each other. For example, the price of gas in California is about 10% higher tha...
6 Pages(1500 words)Coursework
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 Economics; Policy Recommendation-FOMC for FREE!

Contact Us