TAILIEUCHUNG - Lecture Macroeconomics (19/e) - Chapter 16: Interest rates and monetary policy

After reading this chapter, you should be able to: Discuss how the equilibrium interest rate is determined in the market for money, list and explain the goals and tools of monetary policy, describe the Federal funds rate and how the Fed directly influences it, identify the mechanisms by which monetary policy affects GDP and the price level, explain the effectiveness of monetary policy and its shortcomings. | Interest Rates and Monetary Policy McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Interest Rates The price paid for the use of money Many different interest rates Speak as if only one interest rate Determined by the money supply and money demand LO1 Demand for Money Why hold money? Transactions demand, Dt Determined by nominal GDP Independent of the interest rate Asset demand, Da Money as a store of value Varies inversely with the interest rate Total money demand, Dm LO1 Demand for Money Rate of interest, i percent 10 5 0 50 100 150 200 50 100 150 200 50 100 150 200 250 300 Amount of money demanded (billions of dollars) Amount of money demanded (billions of dollars) Amount of money demanded and supplied (billions of dollars) = + (a) Transactions demand for money, Dt (b) Asset demand for money, Da (c) Total demand for money, Dm and supply Dt Da Dm Sm 5 LO1 Assets Securities Loans to commercial banks Liabilities .

• Kinh tế học
• Lecture Macroeconomics
• Kinh tế vĩ mô
• Economic theory
• Interest rates
• Monetary policy
• Federal reserve balance sheet
• Bài giảng Kinh tế vĩ mô
• Science of macroeconomics
• Data of macroeconomics
• Unemployment rate
• Inflation rate
• Principles of microeconomics
• Economic models
• Tools of microeconomics
• Microeconomic transactions
• Natural rate of unemployment
• Consumer price index
• National income
• Agriculture sector
• Agricultural policies
• Economic fluctuations
• Macroeconomic policy
• Business cycle theory