Monetary Policy Essay examples -- essays papers

fiscal Policy I chose to research and write on the topic of monetary policy. My two chief(prenominal) sources of information were www.federal backup man.gov and www.frsbf.org. From my research I would define monetary policy as the macro frugal act of tutelage the country financially stable. According to www.frsbf.org The object of monetary policy is to watch the performance of the economy as reflected in such factors as inflation, economic output, and employment. It works by doctoring demand across the economythat is, peoples and firms willingness to swing on goods and services. The information that I located suggested that the main issues that monetary policy deals with are inflation and unemployment which usually affect each other.Monetary policy is the responsibility of the Federal Reserve System who put the main responsibility of monetary policy on their Federal Open market place Committee (FOMC). The FOMC equals 8 times a year and has 12 members who meet to discuss the state of the economy and what changes can be made to military service the economy. The main tools used in monetary policy are the exercise of short term interest crops which can greatly affect demand as well as manipulating the discount rate and reserve requirements.The discount rate is the interest rate the Federal Reserve Banks snap financial institutions for short-term loans of reserves. A change in the discount rate can decrease or encourage financial institutions lending and enthronization activities. ...