Nobody downloaded yet

Monetary Policy in the United States - Essay Example

Comments (0) Cite this document
Summary
a. Controlling interest rates: This hints towards the role that the FED plays as a monitoring agency. Lower interest rates will serve as an incentive to businesses to invest into capacity expansion, thereby impacting the GDP in the long run.
b. Controlling inflation: Inflation is one of the major issues which confront the FED…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.7% of users find it useful
Monetary Policy in the United States
Read TextPreview

Extract of sample "Monetary Policy in the United States"

Download file to see previous pages 2. As a central agency the FED can seriously affect the manner in which it can affect the banking system. Firstly, it monitors the sale of different government instruments. In this manner it affects the rate of interest in the market and ensures the growth in credit and money supply.
Secondly, it also fixes the manner in which these instruments are purchased from the public and corporations, thereby affecting the interest rate again. Thirdly, the FED can monitor the effectively monitor the amount of lending, thereby influencing the price of the securities and bank stock.
3. Very simply put the reserve requirements are the amount of vault cash and deposits that the banks are stipulated to hold with themselves. Less money in the reserves would imply more money available - the bank will have more loan able funds at its disposal, thereby having favorable implications on the cost of transactions and the bargaining capacity of these institutions with other bodies. The changes in the reserve requirements are made rather infrequently by the government, it may even be the fact that this measure has been employed only once or twice in a decade (Jhonson 2005).
The discount rate is the price the central bank, other financial banks pays while engaging themselves in money relat ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Monetary Policy in the United States Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Monetary Policy in the United States Essay Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/miscellaneous/1527711-monetary-policy-in-the-united-states
(Monetary Policy in the United States Essay Example | Topics and Well Written Essays - 500 Words)
Monetary Policy in the United States Essay Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/miscellaneous/1527711-monetary-policy-in-the-united-states.
“Monetary Policy in the United States Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/miscellaneous/1527711-monetary-policy-in-the-united-states.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Monetary Policy in the United States

Monetary policy

...that the monetary policies were of no use at this particular time. Under consumption was witnessed at period’s prior years to depression when the economic progress was promising. The persisted trend of under consumption played a role in accelerating the economic downturn due the resulting an unutilized capacity. This hindered the much economic growth at the time of economic depression. The federal government in United States failed to initiate monetary policies to revive massive consumption to spur the needed economic growth. The monetary policies at this time did not provide economic incentives to...
7 Pages(1750 words)Research Paper

Monetary Policy

...? Monetary Policy Financial s and the Economy (INSERT SECTION Monetary Policy Financial s and the Economy Since the country’s founding, the United States Federal Government has struggled with the role and control of a central bank. The controversy surrounding the purpose of a central bank links to theoretical and practical economics and politics. Views concerning the control of a central bank vary from total autonomy to strict guidelines from Congress. In order to determine policy recommendations, the following is discussed: 1. Definitions of terms 2. The history and current role of the Federal Reserve system 3. The money...
8 Pages(2000 words)Essay

The monetary and fiscal policy implemented in the United States during the Great Recession and determine the short run and long

...?The Monetary and Fiscal Policy Implemented in the United s During the Great Recession I. Introduction The Great Depression in the United shas become a central point of discussion for fiscal policy makers. Every fiscal decision appears to be referenced to the depression that has ravaged the U.S. economy. There were several strategies introduced by policy makers to combat such occurrences. After all, no economy is safe from depression and market forces continue to follow cyclical trends. The discussion below will tackle some of the important aspects related to depression. These subjects affect all players in the economy. In addition, some...
5 Pages(1250 words)Essay

United States Policy Towards Syria

...that Libya is already resolved, it is time for the united states not only to call upon Assad to step aside (Hook 2010), but also to take action and make sure his dominion is entirely destroyed. It was in Ausgust this year when president Obama asked Syria’s leader, Bashar al-Assad to step aside and leave the office. However, ever since that time, Assad is still in office and very keen at mistreating people. This means that United States need to come up with a tactic that will make sure he leaves his regime in Damascus. The target of United States policy should therefore, ensure that there is a stop to the aggression that...
5 Pages(1250 words)Essay

Foreign Policy of United States

...The Major Era's of Foreign Policy Introduction Foreign policy for the United s has been affected by many things. Eachperiod is important for different reasons. However there are three periods in American politics that affected greatly not only foreign policy but policy in the United States. Those were the three eras of isolationism. This paper will discuss those eras and what they meant to policy both foreign and at home. It will also discuss California State and local governance. 1787-1914 This first period was a very long period of time and many things occurred. Some examples would...
6 Pages(1500 words)Essay

United States Defense Policy

...United s Defense Policy Introduction: Researchers and professionals have often viewed that United s’ Defense Policy is a plan or of action, a component of United States national security, a political process, and an area of study. It includes various factors such as recruitment, training, organizing, deployment, equipping and the use of military force. Current US defense policy gives more emphasis on terrorism and economic transformation. The event of 9/11 became a severe shock to the National Security System of the United States. After this, the policymakers and authorities were forced...
8 Pages(2000 words)Research Paper

POLICY IN THE UNITED STATES(FISCAL POLICY AND MONETARY POLICY)

...work together concurrently to control the rate of employment, currency value stabilization and work towards the realization of economic stability in the states. They both optimize economic growth in the states by controlling the flow of currency in the market. When government expenditure is high through the effect of fiscal policy and the economy goes down due to inflation, the Fed, through monetary policy intervenes to reduce inflation and maximize economy growth (Beetsma 327). The government is the prime body that deals with and regulates the entire economy of its states. The congress therefore makes decisions on which strategy to...
2 Pages(500 words)Essay

Monetary policy

...Monetary policy QN1. Four Chapters in “In Fed we Trust” Ten items I never new of before reading the book Key Playersof the worst financial Crisis i. Three men were responsible in managing the Great Panic. ii. The key individuals were the Treasury Secretaries, Mr. Hank Paulson, The Federal Chairman, Mr. Ben Bernanke, and Tim Geithner. iii. Details of each key player’s characteristics, and there effects on incomes. iv. Their personalities had a noticeable effect on the impacts their decisions had on the monetary system. v. The negative effects of their moves on the psyche of the markets vi. Geithner and Paulson were more prone to Gaffs than Bernanke in the public eye. vii. The biggest...
2 Pages(500 words)Assignment

The influence of quantitative easing monetary policy on Japan and the United States

...Lecturer: Influence of quantitative easing monetary policy on Japan and the United s Introduction Quantitative easing is a form of monetary policy utilized by central banks in order to stimulate the economy in the event that standard monetary policies do not function in the manner they should (Ford 160). Central banks implement quantitative easing through purchase of specific financial assets from commercial banks and other private institutions therefore increasing the prices of the same financial assets while decreasing their yield and increasing the monetary base at the same time. This is different...
11 Pages(2750 words)Research Paper

United States Military Foreign Policy

... After the attacks of September 11, 2001, the shape and scope of American foreign policy changed forever. The United States government came to the conclusion that in order to obtain domestic security, intervention across the globe was absolutely necessary to fight the war on terror. The U.S. armed forces prepared for war by not only increasing the military budget, but they also put forth principles and values fundamental to the American dream to garner support for any conflict deemed a necessity. The federal government firmly believed that the U.S. military should sustain a significant presence in the Middle East for several years, while they completed scattered military bases to...
4 Pages(1000 words)Assignment
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 Essay on topic Monetary Policy in the United States for FREE!

Contact Us