TAILIEUCHUNG - Lecture Principles of money, banking, and financial markets (12th edition): Chapter 17 - Ritter, Silber, Udell

Chapter 17 - Who's in charge here? In this chapter you will learn to explain the intent of Congress when it established the structure and purpose of the Federal Reserve System; describe how the structure of the Federal Reserve has evolved over time; analyze the controversies and benefits regarding central bank independence. | Chapter 17 Who’s in Charge Here? Copyright © 2009 Pearson Addison-Wesley. All rights reserved. Learning Objectives • Explain the intent of Congress when it established the structure and purpose of the Federal Reserve System • Describe how the structure of the Federal Reserve has evolved over time • Analyze the controversies and benefits regarding central bank independence Copyright © 2009 Pearson Addison-Wesley. All rights reserved. 17-2 Introduction • Monetary policy is the responsibility of the Federal Reserve • Basic question—“to whom is the Federal Reserve responsible?” • Although the President appoints the seven members of the Board of Governors, the Fed is not responsible to executive branch Copyright © 2009 Pearson Addison-Wesley. All rights reserved. 17-3 1 Introduction (Cont.) • Congress created Fed in 1913 and has sole authority to alter its mandate • Since a large number of commercial banks are members of Fed, it has been suggested the Fed is answerable to private banks that are members Copyright © 2009 Pearson Addison-Wesley. All rights reserved. 17-4 Formal Structure of the Federal Reserve System • Organization of the Fed is an excellent example of decentralization and blending of public/private authority • Power is deliberately widely diffused so no person, group, or sector can exert leverage to dominate monetary policy Copyright © 2009 Pearson Addison-Wesley. All rights reserved. 17-5 Formal Structure of the Federal Reserve System (Cont.) • Organization – Figure shows the formal structure of the Federal Reserve system – Board of Governors • 7 members appointed by US President with Senate approval for 14 year terms • No two members from same Federal Reserve district • Chairman of Board—selected by President from Board with 4 year term that does not coincide with presidential term Copyright © 2009 Pearson Addison-Wesley. All rights reserved. 17-6 2 FIGURE The formal structure and policy organization of the Federal Reserve

• Ngân hàng - Tín dụng
• Financial markets
• Financial institutions
• Monetary policy
• International finance
• Monetary theory
• Federal reserve system
• Lecture Financial markets
• Thị trường tài chính
• Financial futures markets
• Valuation of financial futures
• Interest rate futures
• Lecture Financial markets and institutions
• Financial institutions markets
• Capital markets
• Money markets
• Derivative securities markets
• Futures markets
• Option markets
• Swap markets
• Foreign exchange derivative markets
• Bank management
• Types of Financial Markets
• Securities traded
• Valuation of securities
• Money market yields
• Bond markets
• Municipal bonds
• Mortgage markets
• Primary mortgage market
• Stock markets
• Common stock
• Foreign exchange markets
• Foreign exchange
• Commercial banks
• Financial statements
• Risks at financial institutions
• Market risk
• Exchange rates
• Economics 252
• Efficient markets
• Excess volatility
• Efficient Markets Hypothesis
• Interest rate derivative markets
• Interest rate swaps
• Mortgage backed securities
• Globalization of mortgage markets
• Financial markets and institutions
• The financial system
• Interest rates change
• Financial markets efficient
• Term structure affect interest rates
• The stock market
• The mortgage markets
• The international financial system
• Financial regulation
• Interest rate fundamentals
• Interest rates
• Security valuation