Category Topic 6

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 currently in a debt crisis of US$ 5 Trillion. The clipboard discusses these problems and what can […]

Choosing the lesser of two evils – for dummies

With a multitude of economic issues circling the globe – the Euro crisis, China’s economic slowdown, and the imminent systemic banking crisis – one of the main focus points on the US presidential election is how these issues will affect not only the US economy, but the global economy as well, since America is one of the […]

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 […]