Monthly Archives: August 2012

Between a rock and Jackson Hole – the Fed is coming

Over the past three years, the U.S. economy has faced a wide range of challenges. Some were unique to the U.S. economy and policy environment, and others were global in scope. When Federal Reserve policymakers today and tomorrow to decide whether to take action to boost the economy, it will be a ‘close call,’ working our way […]

In Favour or against expansionary monetary policy:

In Favour or against expansionary monetary policy: (Follow the link on clipboard): IN FAVOUR: There is evidence that unanticipated stimulative, unanticipated contractionary, anticipated stimulative, and anticipated contractionary monetary policy each have statistically significant effects on output, therefore it can be said that because contractionary monetary policy have a impact on output it is more in […]

Expansionary Monetary Policy: Yay or Nay?

Follow Clipboard link 3 Key instruments used by Fed to conduct a monetary policy: 1. Open market operations 2. Reserve requirements changes 3. Discount rate changes The Fed raises the banking sectors’ reserves through buying government bonds – money supply increases through expansion.   Arguments in favour of Expansionary Monetary Policy In the short run: […]

Expansionary monetary policy –YES or NO?

(Follow the clipboard link for more discussion) or go to http://clipboard.com/wilme/boards/riskbuster If the Fed wishes to increase the money supply, it can do a combination of three strategies: Purchase securities on the open market, known as Open Market Operations Lower the Ferderal Discount Rate Lower Reserve Requirements Above combinations will impact the interest rates. If the […]

The US economic situation and recent monetary policy

The US economy is struggling to recover and finds itself in a vulnerable position. There are many determinants that have led to the downfall of the economy such as weak growth and high unemployment. The country is also country in a debt crisis of US$ 5 Trillion. The clipboard discusses these problems and what can […]

My take on topic 6: Monetary policy in the US

Ladies and gentlemen, please find my PPTs for tomorrow morning’s lecture: Topic 6 In addition, here are some links to resources collected with Clipboard: Topic 6 An update on Saturday the 1st of September following Bernanke’s speech at Jackson Hole: Krugman did not like the speech. Tim Duy’s Fed Watch gives a cost-benefit analysis. The […]

THE US DILEMMA – Please don’t drop the ball

By Mariska Krynauw In November 2012 the American public will go to the polls to elect the next President for the United States of America. The race is between the current President Barack Obama, from the Democrats and Mitt Romney, from the Republicans.  Policy making is effectively on hold until after the elections. Making policy […]