Tuesday, April 4, 2017

4/3 - 4 Monetary Policy Reltionships

  • Expansionary - Recession and Easy $
    • OMO - buy bonds
    • Reserve Requirement - ↓
    • Discount Rate - ↓
    • Bank Reserves - ↑
    • Money Supply - ↑
    • Fed Fund Rate - ↓
    • DM - ↓
    • i - ↓
    • Ig - ↑
    • AD - ↑
    • GDPr - ↑
    • Value of $ - ↓
  • Contractionary - Inflation and Tight $
    • OMO - sell bonds
    • Reserve Requirement - ↑
    • Discount Rate - ↑
    • Bank Reserves - ↓
    • Money Supply - ↓
    • Fed Fund Rate - ↑
    • DM - ↑
    • i - ↑
    • Ig - ↓
    • AD - ↓
    • GDPr - ↓
    • Value of $ - ↑



No comments:

Post a Comment