Fed fiscal monetary policy

224 views
148 views

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
224
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Fed fiscal monetary policy

  1. 1. Bellringer 1. What would you say about a 10% inflation rate? 2. Why are banks important to our economy? 3. What is a recession? 4. If the US GDP grew by 1.7% last year, were we in a recession? 5. What part of our government prints our money?
  2. 2. Great Depression 1929-1933 27% drop in GDP 25% Unemployment 36% drop in World trade 43 straight months of declining spending !!!! Source Yoram Bauman, World Bank “Great Recession” Housing Crisis 2007-2009 5 % drop in GDP 10% Unemployment 20% drop in World trade 18 straight months of declining spending
  3. 3. What if the bank goes out of business? • $250,000 per US account
  4. 4. Who sets the reserve rate? • “The Fed” • 1913
  5. 5. How does “the Fed” work?
  6. 6. Federal Reserve System
  7. 7. Monetary Policy Fed’s Tools Open market operations Reserve Rate (%) Discount Rate (%) Lender of last resort
  8. 8. Why is the Chairman of the Fed sometimes thought of as the “second most powerful man in the US”? • Cause: increases interest rates • Effect: ???? • Cause: lowers interest rate • Effect: ???
  9. 9. What about other countries?
  10. 10. What should The Fed do with interest rates in 1955?
  11. 11. What should The Fed do with interest rates in 1921? US CPI 1914-1920
  12. 12. What should The Fed do with interest rates in 1982?
  13. 13. What should The Fed do with interest rates in 1982?
  14. 14. What should The Fed do with interest rates in 1991?
  15. 15. What should The Fed do with interest rates in 2010?
  16. 16. What should The Fed do with interest rates in 2010?
  17. 17. What should The Fed do with interest rates in 2013?
  18. 18. Fed Chairman game
  19. 19. Book 398-407 • Write a 1 page letter to Fed Chairman Ben Bernanke • Explain whether you support a expansionary or contractionary monetary policy in 2013 • Mention what your policy might do to US unemployment now at 7.5% • Mention what your policy might do to US inflation now at 2.0% • Fed Funds rate now at 0.5 % (50 cents/$100)
  20. 20. After Inflation & Unempl sheets finished Write a 1 page letter to Congressman Raul Grijalva 2 fiscal policy changes you agree with, be sure to include the effects of those changes

×