I. Introduction In order to promote national economic goals, a central bank acts to influence the availability and cost of money and credit, this is known as monetary policy. The Fed has three main tools with which to carry out policy. These instruments of monetary policy are open market operation...

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Date: To: From: Subject: THE FED AND INTEREST RATES Introduction Changing the interest rates is definitely a good monetary policy for the Fed to use when slowing down or speeding up the economy. The government would want to speed up the economy when the economy is in a recessi...

Federal Reserve and the Economic Bubble On Tuesday, November 16, 1999, the Federal Reserve Board will decide whether or not to tighten monetary policy at the Federal Open Market Committee meeting. Throughout the year the Fed has been somewhat hesitant to raise rates, which could slow the economy. Wh...

1. There is nothing wrong with the economy if a garbage collector earns more than an English teacher. The cost of any commodity, including labor, is derived from supply and demand. If the garbage collector earns more, it means that there are fewer people willing to be garbage collectors relative t...

Fed and Interest cuts One of Federal Reserve Bank's roles is to lessen financial crises by acting as a lender of last resort. The Fed is supposed to stand ready to provide fresh reserves to banks in need of cash. This lending is done through the discount window. The interest rate that the...

Summary of Remarks made by Governor Edward M. GramlichThe Samuelson Lecture, before the 24th Annual Conference of the Eastern Economic Association, New York, New YorkFebruary 27, 1998 In this speech Governor Gramlich addresses the issues that arise when the question of whether the Federal Reserve Bo...

: President Clinton appointed Alan Greenspan, a well-known chairman of the Federal Reserve Board, to his fourth term as the chairman of the nation's central bank. Alan Greenspan accepted the chance to lead the Federal Reserve Board for another four-year term beginning June of 2000. President Clin...

The title of this book by Alan S. Blinder and Janet L. Yellen indicates the extent to which the authors found the 1990s US economic boom a spectacular success. Blinder and Yellen provide much personal insight for what they describe as the main reasons for what they refer to as "The Fabulous Decade"....