The Fed Explains Monetary Policy

文章推薦指數： 80 %
投票人數：10人

This tool is called "The Discount Window." In 1977, Congress amended the Federal Reserve Act, stating the Fed's monetary policy objectives were to maximize ... Skipto content Weusecookiesonourwebsitetogiveyouthebestonlineexperience.Pleaseknowthatifyoucontinuetobrowseonoursite,youagreetothisuse.Youcanalwaysblockordisablecookiesusingyourbrowsersettings.Tofindoutmore,pleasereviewourprivacypolicy. Proceed TheFedExplained TheFedExplainsMonetaryPolicy Differenttimescallfordifferentpolicies,anddifferentwaystocommunicatethosepolicies. TheAtlantaFed'slatest"FedExplained"videohitsbothmarks.The4.5-minuteshowtraces102yearsofmonetarypolicythroughengaginganimationandvoiceoverstailoredforthelayperson.Fromthecentralbank'sroleaslenderoflastresort,totheFed's"dualmandate"ofpricestabilityandmaximumemployment,tonewpolicytoolsdevisedduringtherecentfinancialcrisis,"TheFedExplainsMonetaryPolicy"fulfillsitstitle. Transcript Economiesdon'talwaysperformthewaywelike.Gettingthembackintowinningformtakescarefulstrategy.That'swhyweneedamonetarypolicy.Ournation'smonetarypolicyisaneconomicstrategythatinfluencesinterestratesandthesupplyofmoneyandcredit.So,whydoesthismattertoyou?Agoodmonetarypolicypromotespricestabilityandhighemployment.Thatmeanspeoplecanfindjobsandmakebetter-informedchoicesaboutwhattospend,andbusinessescanmakebetterinformeddecisionstoo.Thathelpskeeptheeconomymovingintherightdirection. It'stheFed'sjobtocomeupwiththatmonetarypolicy.In1913,CongresscreatedtheFederalReservetoprovideamorestableandsecuremonetaryandfinancialsystem.TheFed'sroleintheeconomyhasevolvedovertime.Sometimeswhathasailedtheeconomyisasuddenneedforliquidity.Duringafinancialpanic,thepublic'sdemandforcashcancatchbanksbysurprise.Andsincemostofthemoneythebanksholdistiedupinloans,theymayfindgettingtheirhandsoncashdifficult.Actingasthelenderoflastresort,theFederalReservecanlendmoneyagainstabank'sgoodassetsandpreventthefinancialpanicfromdisruptingtheeconomy.Thistooliscalled"TheDiscountWindow."In1977,CongressamendedtheFederalReserveAct,statingtheFed'smonetarypolicyobjectivesweretomaximizeemploymentandmaintainpricestability.That'swhatisnowcalled:the"DualMandate." Formorethan100years,theFedhasuseditspoliciestohelpoureconomyrunsmoothly.Tocreateamonetarypolicythatwillworkbestfortheentirenation,theFedneedsalotofgrassrootsinformation.Wheredoesitcomefrom?Fromfarmers,andrealestateagents,andcardealers,andfactoryowners.AlloverAmerica,differentkindsofmainstreetpeoplesharewhat'sgoingonintheirownbusinesseswiththeirregion'sFederalReserveBank.TheReserveBanksgatherthisinformationandcombineitwitheconomicstatisticslikeinflationmeasuresandemploymentdata.Then,fromalloverthecountry,thatinformationheadstoWashingtonDC.Eighttimesayear,thetwelveReserveBankpresidents,alongwiththeFed'sBoardofGovernors,meetinWashingtonandreportontheirregionaleconomiesandpresenttheireconomicprojections.TheFederalOpenMarketCommittee,orFOMC,combinesallthesedetailedviewsofwhat'sgoingonnationwideandstudiesthewholepicture.AttheendofeachFOMCmeeting,thevotingmembers—fiveof12ReserveBankpresidentsandthesevenFedgovernors—castavoteonsettingmonetarypolicy.Decisionsonmonetarypolicyareimmediatelycommunicatedtothepublic. Tobuildahealthyeconomy,theFOMCneedsgoodtools.IftheFedneedstoadjustinterestratesandaffectinflation,itusesopenmarketoperations,whichisthebuyingorsellingofgovernmentsecurities.Buyingorsellingthesesecuritiesexpandsorcontractsthesupplyofmoneyinthebankingsystem.Raisingorloweringthefederalfundsrate,whichistheinterestratebankspayeachotherforborrowingmoneythatismaintainedataReserveBank,alsoeffectstheinflationrate.Andfinally,allbanksarerequiredtohavereserverequirements:nesteggssetasideandkeptatthereadysotheeconomystaysfluid. Tomeetthechallengesposedbyourlastrecession,theFederalReservedevelopednewtoolsandcommunicationsfortheextraordinarycircumstancesfollowingthefinancialcrisis.Oneoftheseisforwardguidance,whichistheFed'sdescriptionsofitslikelyfuturepolicymaking.Thishelpsshapethemarket'sexpectationsofinterestrates.Anothertoolisquantitativeeasing,whichisawaytoinjectliquidityintotheeconomyandhelpkeeplong-terminterestrateslow.NomatterwhattoolsorpoliciestheFedisusing,we'llalwaysletyouknowwhat'sgoingon.That'swhytheFedchairholdspressconferencesafterFOMCmeetingsonceeachquarter.Also,otherFedofficialsdeliverpublicspeechesandtestifybeforeCongressabouttheFed'sactions. Whyisallthisimportant?Ultimately,allthesefactorsworktogethertocreateaneconomicstrategythatworksforeachregion,makingournationaleconomyrunsmoothlyacrosstheboard. Tofindoutmoreaboutthisandothertopics,visitusatfrbatlanta.org.

請為這篇文章評分？

延伸文章資訊