Monetary policy Essay Topics

U.S. Federal Reserve Monetary Policy

McConnell and Brue, in their distinguished book, Economics: Principles, Problems, and Policies explain clearly the functions of money in any economy. It serves as a means to facilitate easy transactions. (McConnell and Brue, 2004, 200).  Without money, all transactions would have to be carried out through barter trade which involves direct exchange of goods for… View Article

Central Banks and Monetary Policy

In order to fully understand the nature of monetary policy, there is a need to define the function of money. According to economists, the general functions of money are as follows: 1) measure of goods and services, 2) standard of value, 3) medium of exchange, 4) storage of wealth, and 5) speculative function (related to… View Article

Fed, Interest Rate and Monetary Policy

The Federal Reserve System (Fed) through the Federal Open Market  Committee (FOMC) managers the monetary policy of the US by using interest rate in indirectly controlling inflation and indirectly influencing output and employment (Federal Reserve Bank of San Francisco, 2009a, 2009b).  This paper seeks to explain further this assertion in understanding the how the Fed… View Article

Week 6 Homework Solutions

In a phrase, “net tax revenues vary directly with GDP. ” When GDP is rising, so are tax collections, both income taxes and sales taxes. At the same time, government payouts—transfer payments such as unemployment compensation and welfare—are decreasing. Since net taxes are taxes less transfer payments, net taxes definitely rise with GDP, which dampens… View Article

Fiscal Policy Paper

The United States has been known as a powerhouse throughout the world and as having a good reputation with other countries. With the deficit, surplus and a high debt has caused the United States to lose some of its stature on an international level. The national debt has three parts concerning fiscal policies, prevailing economic… View Article