How would monetary policy be conducted using Monetarist approach?
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sorry, couldn't find anything on google about it.\nhttp://scotthortonshow.com/\nmoney, http://www.philipdru.com/griffin_stream.html\nbush & clinton http://www.philipdru.com/triplett_stream.html\nisrael http://antiwar.com/justin/?articleid=8730\nhttp://www.philipdru.com/webb_stream.html\niran http://www.weekendinterviewshow.com/InterviewDisplay.aspx?i=131
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The Federal reserve will continue to do its job, with Dr. Ben S. Bernanke as its chairman. Here is a bit about Dr. Bernanke:\n\n---Dr. Bernanke was born on December 13, 1953, in Augusta, Georgia. He received a B.A. in economics in 1975 from Harvard University (summa cum laude) and a Ph.D. in economics in 1979 from the Massachusetts Institute of Technology.\n\n---Dr. Bernanke was the Howard Harrison and Gabrielle Snyder Beck Professor of Economics and Public Affairs and Chair of the Economics Department at Princeton University (1996-2002). Dr. Bernanke had served as a Professor of Economics and Public Affairs at Princeton since 1985.\n\n---Dr. Bernanke has published many articles on a wide variety of economic issues, including monetary policy and macroeconomics, and he is the author of several scholarly books and two textbooks. He has held a Guggenheim Fellowship and a Sloan Fellowship, and he is a Fellow of the Econometric Society and of the American Academy of Arts and Sciences. Dr. Bernanke served as the Director of the Monetary Economics Program of the National Bureau of Economic Research (NBER) and as a member of the NBER's Business Cycle Dating Committee. Dr. Bernanke's work with civic and professional groups includes having served two terms as a member of the Montgomery Township (N.J.) Board of Education.
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Trying to slow inflation & growth.
226391
Well first, there is an enourmous amount of data to interpret. Then, there's the inter-relationships between the data to correlate (e.g Consumer Price Index, Producer Price Index to other inflationary indicators). All of this analysis is likely done by scientists- and there is some esoteric stuff as well- then the policy advisor takes all this vast information from the scientist and considers economic policy. There are two basic types of policies: monetary and fiscal and usually they try to work in conjunction with one another. \nOverall the economy is comprised of C=Consumer Spending G=Government Spending I=Industry spending X-M (Imports-Exports which is trade).\nSO, economic policites would look at all of the above and set interest rates, or determine whether to advise an increase in government spending, or in some cases, create trade tariffs...\nBut underlying all this policy is obviously intense political pressure.
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The money is printed and managed by the Fedral Reserve and inflation determines the value of the dollar.
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The Reserve Bank of a country usually will decide how much money is in circulation.\n\nThis is governed by the interest rate it will charge for the money that is on offer for borrowers which can be other banks who will in turn lend it to other borrowers.\n\nIf the inflation is likely to increase then the supply of money is restricted by increasing the interest rate so that the borrowers will not borrow or borrow less.\n\nConversely to kick start the economy the interest rates are decreased so that the companies will borrow and start the businesses and promote economic growth.
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When you are saving, you want the best rate you can get. If, for example, the US has the highest interest rate, everyone would want to save here and the dollar would be in demand, thus, people would be willing to pay more to get it. Is that simple enough?
62039
Since the late 1960s the Federal Reserve Board has expanded the growth of money stocks at generally increasing rates. These policies have led to increasing inflation. The key elements in the Fed's failure to chart a noninflationary course are (1) its political composition and (2) its preoccupation with the interest-rate structure. Because Fed terms are so long, no President can exercise significant control over this major determinant of economic policy. The Depository Institutions Deregulation and Money Control Act of 1980 extended the Fed's control over commercial banks and monetization of debt. Congress must deal with the inability of the Federal Reserve System to function as intended. It could assume direct control over monetary growth, or it could bring central banking functions under the control of the President. A final option, and a true institutional reform, would begin with the abolition of the Fed as a policy-making central bank. This would allow the banking system to become competitive and thus innovative and in all likelihood serve consumers better than the Fed has done
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Macroeconomics? Simple! But what is the question (without the book).
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the answer to this is "probably" Mortgage rates are helped by a friendly Fed and the Federal Reserve is less likely to meddle in politics by doing any changing during an election cycle.  Better yet are the chances of no rate changes, however, due to the negative bend the Fed has been on for almost two years now, even a neutral stance would be great for all of us!
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In my opinion the Federal Reserve monetary policy has been lagging what is going on in the economy for the past decade.  The economy has been cooling a bit over the last several months following strong growth driven by President Bush's tax cuts.  Starting early in 2004 there has been strong demand for commodity products particularly in China and India.  This has put some upward pressure on prices.  This pressure was aided by the high prices for petroleum.\n\nI think that BB is making a statement in reaction to this.  \n\nOver the past few months petroleum prices have dropped, the housing market has tanked, holiday consumer demand so far is weak, etc.  All these are deflationary.  So, once again the Fed has it backwards.\n\nThe economy will be fine so long as the Democrats don't start raising taxes.  If this happens we will rapidly move into a recession.
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That's because monetary policy is far more flexible : \n1. u don't need to enact laws to change monetary policy\n2. the impact of rate hikes or rate lowering spreads wider than tax policy
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Decreasing interest rates can actually spur inflation rather than curb it. That is why the Fed keeps raising interest rates.
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It would take a whole course to give you a comprehensive response. You might consider signing up for one at a local college.\n\nMeanwhile, in a nutshell, here's what's happening at this time in the economy: The Fed is always concerned with keeping economic growth at an acceptably high level and keeping the rate of price inflation at an acceptably low level.\n\nWhen the economy gets cooking, the money supply expands (that's actually what inflation is). The business community spends more to satisfy their higher level of business activity, and consumers feel rich so they spend more.\n\nThe US economy has been on a five-year expansion. It's reaching the level where inflation is becoming a serious problem. So the Fed has been raising interest rates to try to keep growth from getting too fast. But consumers have borrowed huge, huge amounts, including in mortgages, so if the Fed "slams on the brakes" too hard by raising interest rates too much, the risk is that a severe recession or worse could set in, triggered by that mountain of debt.\n\nMeanwhile, other economies, especially China and India, have been growing at very high rates. They are gobbling up all of the commodities they can find - oil and gas, lumber, base metals, etc. That adds to inflation.\n\nWe are in the midst of a commodities boom. Mining and energy stocks have come a long way up but have a long way still to go. Many companies have done poorly for several years because they don't operate well in a higher-inflation environment (their costs go up faster than they can raise prices).\n\nThat's a lot of information in one short message. As I said, look into taking an economics course. I was a chemist once, but enrolled in business school and loved every minute of it because of the fascinating and useful things I learned.\n\nBest of success.
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Milton Friedman has made two particularly fundamental contributions to the economic policy debate. They are his work on the "Quantity Theory of Money" and the expectations augmented "Phillips Curve."\n\nFor more information checkout the link below.
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I like this question and feel stupid that I don't know the answer. I should have taken that class on Central Banks. My guess is that it is a combination of the money supply, interest rates and government assets held (tresuries) by other countries.
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Sorry I didn't see your question sooner.\nThe Mundell-Flemming Model assumes a small open economy.  Specifically, the country being studied can't affect world prices.  Open includes openess to financial flows, as well as goods and services flows.\nOne implication is that no single country can affect the interest rate.  There is world interest rate, r*.