In class we discussed the role of the Federal Reserve and the three policies they use to control money supply/economy (1. Reserve Requirement, 2. Discount Window, 3. Open Market Operations).
Afterwards, students were introduced to the first model in Section 5 (5th overall) which took a look at the opportunity cost/preference for holding cash.
The homework is linked below and the notes are attached.
Notes - Monetary Policy and Liquidity Preference Model
HW - pgs.291-294 (10, 12, 14, 15, 22)
Also, read over the link below of the Federal Reserve web page:
History of the Federal Reserve
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