In order to counter the trend, the government and Federal Reserve could use fiscal and monetary policies to intervene the economy. ... There are three tools that the Federal Reserve could use for a tight money policy including raise reserve requirement, raise discount rate and sell treasure bill in the market. ... By selling treasure bill in the market, the Federal Reserve decreases the amount of money supply in the circulation. ... Also the Federal Reserve could take an easy money policy to stimulate the economy and increase the demand. ... Second, the Fed could lower the discount rate, which...

• Word Count: 1364
• Approx Pages: 5
• Grade Level: Undergraduate

So far the, the Federal Reserve has slashed the interest rate three times this year. ... It's because Federal Reserve Chairman, Alan Greenspan believes in a theory known as the "Philips's Curve." Last week, Federal Reserve Board Chairman Alan Greenspan indicated he was leaning toward a "pre-emptive action" against inflation because a tightening labor market must, "absent the unlikely repeal of the law of supply and demand," inevitably drive up wages," wrote Kim Clark, Business & Technology 6/28/99. ... Which is why the Federal Reserve has been slashing the interest rate. ... Howeve...

• Word Count: 502
• Approx Pages: 2
• Has Bibliography

On September 18, 2013, the Federal Reserve was to have decided whether it would begin to reduce the eighty-five billion dollar per month bond purchasing program known as quantitative easing(QE) that it uses to support the economy(TheEconomist). ... The Federal Reserve's large-scale purchases of Treasury securities may provide a moderate boost to economic growth and inflation, but it appears the U.S. markets are only up because of this stimulus, as if they were high on steroids. ... Following this rule, the Federal Reserve records each QE transaction as an asset and a liability, which by...

• Word Count: 855
• Approx Pages: 3
• Has Bibliography
• Grade Level: Undergraduate

Though a "solid recovery in the US economy" is evident, Federal Reserve officials are saying that any rise in interest rates in the United States are more than likely to be off in some way. Members of the Federal Reserve as well as the President of the Philadelphia Federal Reserve have made various comments, stating that "any policy adjustment need not take place in the near future", and saying that the current low rate environment would extend well beyond the spring. ... The article points that the comments that are being made by Federal Officials all suggest that the strategy of the central ...

• Word Count: 516
• Approx Pages: 2
• Grade Level: Graduate

(Watkins, 2011) Rising interest rates are a possibility, because the Federal Open Market Committee was focused on: purchasing Treasury securities, commercial paper and providing ample amounts of liquidity to the financial system. ... This is due to the fact that the federal government and states have been aggressively cutting spending to deal with rising deficits. ... The Federal Reserve needs to raise lending standards at many large banks. ...

• Word Count: 664
• Approx Pages: 3
• Has Bibliography
• Grade Level: High School

The new President of the Federal Reserve Board, Adolph Miller, tightened the monetary policy and set out to lower the stock prices since he perceived that speculation led stocks to be overpriced, causing damage to the economy. ... After the crash there was criticism of the Federal Reserve policy. ... This reduced liquidity by lowering non-borrowed reserves. ... The Federal Reserve and other banking regulators have softened some of the Act's separation of securities and banking functions by letting banks sell certain securities through affiliated companies. ...

• Word Count: 1262
• Approx Pages: 5
• Grade Level: High School

The 1920's saw a stock market boom in the U.S. as the result of general optimism: businessmen and economists believed that the newly-born Federal Reserve would stabilize the economy, and that the pace of technological progress guaranteed rapidly rising living standards and expanding markets. ... Federal Reserve's attempts in 1928 and 1929 to raise interest rates to discourage stock speculation brought on an initial recession. ...

• Word Count: 669
• Approx Pages: 3
• Grade Level: High School

On November 6, 2003 the chairman of the board of governors for the Federal Reserve and the federal open market committee, Alan Greenspan, spoke to the securities industry association about the future of the U.S. economy. ...

• Word Count: 440
• Approx Pages: 2
• Grade Level: High School

The destruction of New York's World Trade Center near Wall Street shook the world financial markets after the incident of stocks dropped, oil prices surged, and money flooded into Treasury bonds. European markets closed in negative territory, led by insurance stocks and financial houses, as traders ...

• Word Count: 299
• Approx Pages: 1
• Grade Level: Undergraduate

The government attempts to manage the economy's ups and downs through two types of economics policy "fiscal policy and monetary policy. To encourage steady economic growth, making use of two policies is important. Monetary policy is managing the economy by controlling the money supply and intere...

• Word Count: 315
• Approx Pages: 1
• Grade Level: Undergraduate

McTeer, president and chief executive officer of the Federal Reserve bank of Dallas, two factors determine the rate of economic growth; productivity increases (more output for the same amount of inputs), and labor (the number of hours worked. ...

• Word Count: 321
• Approx Pages: 1

The economic recovery plan was brought to a halt late 2012 by the federal government when cuts in military spending and other factors overwhelmed the Federal Reserve's expanded campaign to stimulate growth (Appelbaum and Schwartz, 2013). Beginning March 1, 2013, significant federal spending cuts were put in place, increasing the amount of payroll taxes paid by most Americans, with the expiration of a temporary cut in early January 2013 (Appelbaum and Schwartz, 2013). ... This past summer, however, Federal Reserve chairman Ben Bernanke tripled the size of the money supply in his policy ...

• Word Count: 1445
• Approx Pages: 6
• Has Bibliography
• Grade Level: Undergraduate

NAFTA Mexico and the United States along with Canada have entered into a trilateral free trade agreement called the North American Free Trade Agreement otherwise known as NAFTA. NAFTA has got to be the largest trading agreement in history; the agreement creates a single market of 370 mi...

• Word Count: 924
• Approx Pages: 4
• Grade Level: High School

The role of the banking system can be described by explaining the following terms, for example, the Federal Reserve which is the bank of the banks, it hold all the money for the banks and it makes loans to banks too. ... In a monetary policy they can change the reserve requirement. ...

• Word Count: 1180
• Approx Pages: 5
• Grade Level: High School

The Federal Reserve Bank of Cleveland suggest: " that if rapid productivity gains pull down the costs of production, prices should also be allowed to fall, so workers can enjoy the benefits of higher productivity through increases in real wages." ...

• Word Count: 881
• Approx Pages: 4
• Grade Level: Undergraduate

The federal government has focused much of its efforts in dealing with these deceptive and unethical practices. In a statement made during one of his Congressional hearings, Federal Reserve Chairman, Alan Greenspan stated, " With the inception of unethical practices and fraudulent misconduct of corporate CEO's, the financial market have lost more $200 trillion dollars by way of stocks, 401K's, and retirement pensions."" ...

• Word Count: 1133
• Approx Pages: 5
• Has Bibliography
• Grade Level: High School

This is because speculators believe that the Federal Reserve is likely to lower interest rates to stimulate growth. ... This is because speculators believe that the Federal Reserve is likely to lower interest rates to stimulate growth. ...

• Word Count: 2004
• Approx Pages: 8
• Grade Level: Undergraduate

First, he encouraged a restrictive monetary policy by encouraging the Federal Reserve to keep Federal Interest Rates high. ... Out of these four changes, the Reagan Administration had the easiest time encouraging the Federal Reserve to keep rates high. ...

• Word Count: 3958
• Approx Pages: 16
• Has Bibliography
• Grade Level: High School

Economic Growth refers to the expansion of a countries productive possibilities. Economic growth is measured by changes in real GDP. The level of increasing economic growth will determine, to a large extent, people's incomes and living standards in a country. Macroeconomic theory which involves the ...

• Word Count: 2293
• Approx Pages: 9
• Grade Level: Undergraduate

Most of the countries involved were in the developing or transition worlds, an exception being the collapse of an important hedge fund in the United States in the second half of 1998 which directly threatened international financial markets and forced the Federal Reserve to intervene to prevent a global meltdown. ...

• Word Count: 3629
• Approx Pages: 15
• Has Bibliography
• Grade Level: Undergraduate