ECON 2305 1st Edition Lecture 25 Outline of Last Lecture I More Taxes Outline of Current Lecture I Fed Tools II Open Market Operations Current Lecture Fed Tools of Monetary Policy Discount Loans Reserve requirement Open market operations What is Open Market Operations Buying Selling of government securities Key tool of monetary policy Flexible Reversible Buying bonds Federal Reserve Bonds Banks Individuals Mutual funds states pensions etc Expansionary monetary policy more money Selling bonds Complete opposite of buying bonds Contractionary monetary policy reducing the money supply Recession gap buy bonds Monetarist View Change in monetary policy Change in excess reserves Multiple change in money supply Change in interest rate Change in investment Multiple change in GDP Taxes Continued Small Taxes Utility bills Garbage Tax These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Gas Tax Cable Tax
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