Macroeconomics Discussion Essay Example | Topics and Well Written Essays - 750 words

Macroeconomics Discussion - attempt ExampleMoney sum up is the currency circulating in the economy which is created by the ply, the depositors, and investors.Each of the 12 Federal Reserve banks perform the following a. clear checks b. issue new currency c. withdraw shamed currency from circulation d. administer and make discount loans to banks in their districts e. evaluate proposed mergers and applications for banks to expand their activities f. act as intermediaries surrounded by the business community and the Fed g. examine bank holding companies and state-chartered banks h. collect data on topical anesthetic business conditions i. use their staff of professional economist to research topics related to fiscal policy (Mishkin 369- 370).The money supply dissolve be changed by increasing our deposits held by banks. This money creates a repercussion of make in the economy when borrowed by companies who use this for their operations. Through the money multiplier, the invested money could increase employment an payoff more than its actual value.(3.) You are appointed as the chair of FRB. Congratulations Chair, economy is in break what are the policy notes you will undertake to push GDP toward potential GDP What are the problems of implementing monetary policy in practiceUnder an expansionary policy, the central bank must increase the money supply and lower the short- term interest rates. The Fed can engage in the following a. open commercialise purchase which expands reserves and monetary base b. lower the discount rate which encourages borrowing by banks or c. lower the reserve requirements among banks.Part Three write a few sentences summarizing what you have learned and how learning this will help you personally. ) Thanks The most important thing which I have learned so far is the interdependence of the players in an economy. It is very important to note that the action of one player can have a tremendous effect in other sectors. Learning the fun ctions of money, how money is controlled and managed, and how it can be used to stimulate or slow down the economy is really something very interesting to me. subtile that my actions can influence the economy, I can now align my decisions in order to help the FED to achieve its economic goals. This is very important noting the forecasted downturn in the US economy in the overture future. Part FourWhat is money supply, M1 and M2 which definition of money supply is more liquid and why M1 is the narrowest measure of money which includes currency, checking account deposits and travelers checks. The M2 includes the M1 plus other assets that have check-writing features such as small-denomination time deposits,