TAILIEUCHUNG - Lecture Principles of economics (Asia Global Edition) - Chapter 23

Chapter 23 - Monetary policy and the central bank. When you finish this chapter, you should be able to: Describe the structure and responsibilities of the federal reserve system, analyze how changes in real interest rates affect planned aggregate expenditure and short-run equilibrium output, show how the demand for money and the supply of money interact to determine the equilibrium nominal interest rate, discuss how the fed uses its ability to control the money supply to influence nominal and real interest rates. | Monetary Policy and the Central Bank Chapter 23 McGraw-Hill/Irwin Copyright © 2015 by McGraw-Hill Education (Asia). All rights reserved. Learning Objectives Describe the structure and responsibilities of the Central Banking System Analyze how changes in the federal funds rate and real interest rate affect planned aggregate expenditure and short-run equilibrium output Show how the demand for money and the supply of money interact to determine the equilibrium nominal interest rate Discuss how the central bank uses its ability to control the money supply to influence nominal and real interest rates Fed Watch Analysts attempt to forecast Fed (the . central bank) decisions about monetary policy Greenspan briefcase indicator Central bank decisions have significant effects on financial markets and the macro economy Monetary policy is a major stabilization tool Quickly decided and implemented More flexible and responsive than fiscal policy Country/Economy Central Bank Australia Reserve Bank of Australia Canada Bank of Canada China People’s Bank of China Hong Kong Hong Kong Monetary Authority Indonesia Bank Indonesia Japan Bank of Japan Malaysia Bank Negara Malaysia Singapore Monetary Authority of Singapore South Korea Bank of Korea United Kingdom Bank of England United States Federal Reserve System (Fed) Central Banks of Selected Economies The Central Banking System and the Federal Reserve Responsibilities of the central bank: Conduct monetary policy Oversee and regulate financial markets Central to solving financial crises The Federal Reserve System began operations in 1914 Does not attempt to maximize profit Promotes public goals such as economic growth, low inflation, and smoothly functioning financial markets The Federal Reserve Organization 12 Federal Reserve Bank districts Assess economic conditions in their region Provide services to commercial banks in their region Leadership is provided by the Board of Governors Seven governors are .

• Kinh tế học
• Principles of economics
• Lecture Principles of economics
• Market imperfections
• The international economy
• Monetary policy
• Federal reserve
• Ten principles of economics
• People face tradeoffs
• Opportunity cost
• Marginal changes
• Economics of information
• Consumer choice
• Free rider problem
• Market transactions
• Welfare Economics
• Consumer surplus
• Demand curve
• Efficiency of markets
• Nature of an externality
• Market inefficiency
• Negative externalities
• Principles of microeconomics
• Lecture Principles of microeconomics
• Scarce resources
• Scarcity implies choice
• Choice implies cost
• Principles of agricultural economics
• Agricultural economics
• Economics of agricultural production
• Theory of consumer behaviour
• Economics of market demand
• Dynamics in demand analysis
• Analysis of agricultural markets
• Agricultural markets
• Economics of trade
• Costs of taxation
• Deadweight loss
• Laffer curve
• Supply side economics
• Market forces
• Supply and demand
• Market economies
• Competitive Markets
• Thinking like an economist
• Economic models
• Circular flow diagram
• Production possibilities frontier
• The gains from trade
• Production possibilities
• Comparative advantage
• Absolute advantage
• Costs of production
• Total revenue
• Total cost
• Opportunity costs
• Price elasticity of demand
• Price elasticity
• Midpoint method
• Demand curves
• Factors of production
• Demand for labor
• Production function
• Marginal product of labor
• Controls on prices
• Price ceiling
• Price floor
• Market outcomes
• Theory of consumer choice
• Budget constraint
• Indifference curve
• Marginal rate of substitution
• Measuring nation’s income
• Economy’s income
• Gross domestic product
• Components of GDP
• International trade
• Determinants of trade
• Equilibrium without trade
• Production and growth
• Economic growth
• Monetary system
• Functions of money
• Central bank
• Open economy macroeconomics
• Economy macroeconomics
• Closed economy
• Open economy
• Public goods
• Common resource
• Types of goods
• Cost benefit analysis
• Aggregate demand
• Aggregate supply
• Short run economic fluctuations
• Economic fluctuations
• Tax system
• Federal Government
• Marginal tax rate
• Budget surplus
• Macroeconomic policy
• Debate over macroeconomic policy
• Stabilize the economy