APMac Unit 4 Lesson 6 - Monetary Policy (Modules 26-27) by jclerch https://padlet.com/jclerch/kuo6ja6asx19 Financial Sector en-us 2017-01-01 17:54:44 UTC 2025-12-29 16:42:31 UTC hello@padlet.com https://padlet-uploads.storage.googleapis.com/135439946/a7f66ebd48a57948c8c0309357895c41/IMG_12291_1mb.png Federal Reserve Bank Purposes and Functions jclerch https://padlet.com/jclerch/kuo6ja6asx19/wish/146948866 This is perhaps the single best site detailing the importance of the Fed.]]> 2017-01-13 00:17:34 UTC https://padlet.com/jclerch/kuo6ja6asx19/wish/146948866 jclerch https://padlet.com/jclerch/kuo6ja6asx19/wish/153972159 2017-02-15 12:06:37 UTC https://padlet.com/jclerch/kuo6ja6asx19/wish/153972159 jclerch https://padlet.com/jclerch/kuo6ja6asx19/wish/154578243 2017-02-17 13:47:30 UTC https://padlet.com/jclerch/kuo6ja6asx19/wish/154578243 jclerch https://padlet.com/jclerch/kuo6ja6asx19/wish/154578337 2017-02-17 13:47:51 UTC https://padlet.com/jclerch/kuo6ja6asx19/wish/154578337 jclerch https://padlet.com/jclerch/kuo6ja6asx19/wish/154578549 2017-02-17 13:48:48 UTC https://padlet.com/jclerch/kuo6ja6asx19/wish/154578549 jclerch https://padlet.com/jclerch/kuo6ja6asx19/wish/154579099 2017-02-17 13:51:05 UTC https://padlet.com/jclerch/kuo6ja6asx19/wish/154579099 jclerch https://padlet.com/jclerch/kuo6ja6asx19/wish/154582758 2017-02-17 14:03:33 UTC https://padlet.com/jclerch/kuo6ja6asx19/wish/154582758 Video moving through open market operations slowly and thoroughly jclerch https://padlet.com/jclerch/kuo6ja6asx19/wish/156041958 2017-02-24 15:09:58 UTC https://padlet.com/jclerch/kuo6ja6asx19/wish/156041958 jclerch https://padlet.com/jclerch/kuo6ja6asx19/wish/156207863 2017-02-25 20:52:44 UTC https://padlet.com/jclerch/kuo6ja6asx19/wish/156207863 Class time Practice Set jclerch https://padlet.com/jclerch/kuo6ja6asx19/wish/156890343 Here is the practice set that we worked on in class. The next document is the answer key. ]]> 2017-02-28 23:12:15 UTC https://padlet.com/jclerch/kuo6ja6asx19/wish/156890343 Tools of Monetary Policy Answer Key jclerch https://padlet.com/jclerch/kuo6ja6asx19/wish/156890346 Here is the answer key to the practice set that we worked on in class. ]]> 2017-02-28 23:12:16 UTC https://padlet.com/jclerch/kuo6ja6asx19/wish/156890346 jclerch https://padlet.com/jclerch/kuo6ja6asx19/wish/179871928 2017-08-01 16:24:45 UTC https://padlet.com/jclerch/kuo6ja6asx19/wish/179871928 For a longer overview of the Fed, check out this series produced by the Philadelphia Fed. jclerch https://padlet.com/jclerch/kuo6ja6asx19/wish/196909118 2017-10-13 17:19:05 UTC https://padlet.com/jclerch/kuo6ja6asx19/wish/196909118 jclerch https://padlet.com/jclerch/kuo6ja6asx19/wish/203867963 2017-11-06 13:55:30 UTC https://padlet.com/jclerch/kuo6ja6asx19/wish/203867963 jclerch https://padlet.com/jclerch/kuo6ja6asx19/wish/203868595 2017-11-06 13:56:50 UTC https://padlet.com/jclerch/kuo6ja6asx19/wish/203868595 jclerch https://padlet.com/jclerch/kuo6ja6asx19/wish/227835705 2018-02-04 11:20:35 UTC https://padlet.com/jclerch/kuo6ja6asx19/wish/227835705 Questions jclerch https://padlet.com/jclerch/kuo6ja6asx19/wish/245832316 1. Can you describe the money market? 

2. Can you graph the money market? 

3. Can you explain why the demand curve is downward sloping? 

4. Can you explain why the supply curve is vertical? 

5.  How do banks create money? 

6. Can you use the money multiplier to figure out how much a deposit will: (a) maximally change the potential new loans by the bank; (b) maximally change the potential new loans by the banking system; (c) maximally change the money supply, and; (d) maximally change demand deposits? 
]]> 2018-03-25 14:42:25 UTC https://padlet.com/jclerch/kuo6ja6asx19/wish/245832316 jclerch https://padlet.com/jclerch/kuo6ja6asx19/wish/272326842 2018-08-08 12:26:44 UTC https://padlet.com/jclerch/kuo6ja6asx19/wish/272326842 jclerch https://padlet.com/jclerch/kuo6ja6asx19/wish/296923138 2018-10-25 13:30:43 UTC https://padlet.com/jclerch/kuo6ja6asx19/wish/296923138 jclerch https://padlet.com/jclerch/kuo6ja6asx19/wish/370072368 2019-07-03 10:08:19 UTC https://padlet.com/jclerch/kuo6ja6asx19/wish/370072368 jclerch https://padlet.com/jclerch/kuo6ja6asx19/wish/372081093 2019-07-23 23:01:29 UTC https://padlet.com/jclerch/kuo6ja6asx19/wish/372081093 jclerch https://padlet.com/jclerch/kuo6ja6asx19/wish/372289617 2019-07-25 15:06:25 UTC https://padlet.com/jclerch/kuo6ja6asx19/wish/372289617 Essential Knowledge jclerch https://padlet.com/jclerch/kuo6ja6asx19/wish/372387314 Central banks implement monetary policies to achieve macroeconomic goals, such as price stability.

The tools of monetary policy include open-market operations, the required reserve ratio, and the discount rate. The most frequently used monetary policy tool is open-market operations.

When the central bank conducts an open-market purchase (sale), reserves increase (decrease), thereby increasing (decreasing) the monetary base.

The effect of an open-market purchase (sale) on the money supply is greater than the effect on the monetary base because of the money multiplier.

Many central banks carry out policy to hit a target range for an overnight interbank lending rate. (In the United States, this is the federal funds rate.)

Central banks can influence the nominal interest rate in the short run by changing the money supply, which in turn will affect investment and consumption. [See also the influence on net capital inflows.]

Expansionary or contractionary monetary policies are used to restore full employment when the economy is in a negative (i.e., recessionary) or positive (i.e., inflationary) output gap.

Monetary policy can influence aggregate demand, real output, the price level, and interest rates. [See also the effect on exchange rates.]

A money market model and/or the AD–AS model are used to demonstrate the short-run effects of monetary policy.

In reality, there are lags to monetary policy caused by the time it takes to recognize a problem in the economy and the time it takes the economy to adjust to the policy action.
]]> 2019-07-26 13:50:24 UTC https://padlet.com/jclerch/kuo6ja6asx19/wish/372387314 Enduring Understanding jclerch https://padlet.com/jclerch/kuo6ja6asx19/wish/372387399 Fiscal and monetary policy have short-run effects on macroeconomic outcomes.]]> 2019-07-26 13:51:29 UTC https://padlet.com/jclerch/kuo6ja6asx19/wish/372387399 Learning Objectives jclerch https://padlet.com/jclerch/kuo6ja6asx19/wish/372387414 Define monetary policy and related terms.

Explain (using graphs as appropriate) the short-run effects of a monetary policy action.

Calculate (using data and balance sheets as appropriate) the effects of a monetary policy action.

Define why there are lags to monetary policy.
]]> 2019-07-26 13:51:42 UTC https://padlet.com/jclerch/kuo6ja6asx19/wish/372387414 jclerch https://padlet.com/jclerch/kuo6ja6asx19/wish/409283282 2019-11-11 02:32:18 UTC https://padlet.com/jclerch/kuo6ja6asx19/wish/409283282 Answers to Problem Set jclerch https://padlet.com/jclerch/kuo6ja6asx19/wish/1188632845 2021-02-10 17:24:27 UTC https://padlet.com/jclerch/kuo6ja6asx19/wish/1188632845 Problem Set jclerch https://padlet.com/jclerch/kuo6ja6asx19/wish/1188637771 2021-02-10 17:25:19 UTC https://padlet.com/jclerch/kuo6ja6asx19/wish/1188637771 Lesson Introduction jclerch https://padlet.com/jclerch/kuo6ja6asx19/wish/1189273947 2021-02-10 19:16:45 UTC https://padlet.com/jclerch/kuo6ja6asx19/wish/1189273947