Federal Reserve Essays


Monetary and Fiscal Policy

Monetary policy is conducted by central banks, while other branches of the government are responsible for fiscal policy. The federal reserve illustrates the three major ways in which is uses monetary policy. Monetary policy reflects the amount of money that is in the economy, which in turn influences the health of that economy. The Fed sets monetary policy in line with seeking a stable rate of growth, controlled inflation and a healthy rate of job creation. The primary means by which the Fed implements monetary policy is through open market transactions. These are the buying and selling of Treasury… Continue Reading...

Quantitative Easing

Easing Quantitative easing is a fiscal policy where the United States federal reserve buys long-term assets, usually securitized by mortgages and also U.S. treasuries. This is done with the main aim of decreasing the long-term interest rates. Low interests also favor the individual investors. This is an advantage to the American economy as it has plenty of investments coming into the country (Cochrane, 2011). Quantitative Easing was used to stimulate the economy following the "Great Recession." At the start of the financial crisis, the European Central Bank did not decrease its rates. However, when the Lehman Brothers' institution collapsed,… Continue Reading...

Macroeconomics and Gas Stations

from fiscal policy. First, it is run by a different body (the federal reserve, rather than Congress). The federal reserve's most recent signals to the market are the higher interest rates will be required. This has implications for both the overall health of the economy and for the decision to buy a gas station. First, higher rates are likely because the economy is nearing full employment and thus inflation is going to be more of a concern going forward (Matthews, 2016). Second, high rates affect the cost of debt. If inflation is a risk, higher rates will arrive, and… Continue Reading...

How to Grow the Economy

taxes, government spending and the general tools of the federal reserve Bank including the changing of the reserve ratio requirements, the discount rate and the selling of government securities. There is also the question on what happens with things like aggregate demand, gross domestic product and employment. While predicting the outcome of economic efforts and policy can sometimes be hard to pin down, there are best practices that are generally held to be better than others when economic expansion is the desired outcome. Analysis The typical reason for economic expansionary policies is when an economy is emerging out of… Continue Reading...

Inside the Meltdown

Congress were gathered for a private session where they were to be briefed by the federal reserve chairman. The chairman told the shocked leadership that the U.S. economy was on the verge of a serious meltdown and things were probably going to take a nose dive for the worst in a few number of days. A sudden pause fell upon the room, almost as if oxygen had been sucked off it, remembers Sen. Christopher Dodd (D-Conn.) (TPF, 2009). With the housing bubble bursting and trillions of dollars in mortgages beginning to go bad in the year 2007, fear began… Continue Reading...

Key Concepts in Economics

a sluggish pace of hiring and plunging pressure on prices from a stronger dollar confounds the depiction for the federal reserve as it ponders on its subsequent interest rate rise. A key concern for investors with regard to this perception of an economic growth is that the economy of China has been weak in recent periods. Taking into consideration that China is one of America's biggest trading nation, there are apprehensions that this might have an adverse impact on the U.S. economy. In addition, there is the concern of the decline in the prices of oil together with the… Continue Reading...

Student Loans Essay

for consumer credit and deposit products that previously were the responsibility of the federal reserve Board and other federal agencies and other responsibilities for consumer protection in financial services were consolidated under the purview of the CFPB.10 Despite the fact that some type and level of disclosures are routinely provided by most financial services organizations, these initiatives have been important for improving the overall quality of such disclosures for a number of reasons. In this regard, Hogarth and Merry emphasize that, “While many financial service firms provide product information in the absence of mandatory disclosure requirements, the presence of… Continue Reading...

Repealing Of Glass Steagall a Mistake

the other, prior, steps had been the creation of federal reserve and the introduction of monopoly protections under the Clayton Act. The objective of these different elements was to bring about some semblance of control over capitalist activities, under the recognition that when busts occurred, many people suffered, including many who were not a part of the boom in the first place. The Great Depression was another recognition of this fact as millions were thrown out of work with no social protections. Glass-Steagall therefore did a couple of things, owing to the separation of investment and commercial banking. By… Continue Reading...

Probability Of Inflation or Deflation

(2009) stated that the United States is an inflation nation because of the actions undertaken by the federal reserve. He argues that inflation is likely to continue because the federal reserve control of the interest rate is nearly zero while bank reserves continue to increase enormously due to the federal reserve’s purchase of bonds and mortgages. Despite the assurances by the Fed and these financial institutions to lessen reserves significantly in order to prevent inflation, inflation is likely to remain in the coming years. This is primarily because there is no sound governmental policy and governmental plans like the… Continue Reading...

Careers in Criminal Justice and Prospects

candidate for the job. Works Cited Abel, Jaison R, Richard Deitz, and Yaqin Su. “Are Recent College Graduates Finding Good Jobs?” federal reserve Bank of New York Current Issues in Economics and Finance. Volume 20, Number 1. 2014. https://www.newyorkfed.org/medialibrary/media/research/current_issues/ci20-1.pdf Bauerlein, Mark. “The Major and the Job Market, the Dream and the Reality.” The Chronicle of Higher Education. https://www.chronicle.com/blogs/brainstorm/the-major-and-the-job-market-the-dream-and-the-reality/40779 Davis, Alyssa, Will Kimball, and Elise Gould.  The Class of 2015. Briefing Paper 401. Economic Policy Institute.  May 27, 2015. http://www.epi.org/publication/the-class-of-2015/ Kim, Brian.  Top 10 Reasons Why College Graduates Can't Get a Job.  BrianKim.net http://briankim.net/articles/top-10-reasons-why-college-graduates-cant-get-a-job/ “Probation Officers and Correctional Treatment Specialists.” United States Department… Continue Reading...

Economics and Global Capitalism

is going to go into a recession. We are encouraged to spend rather than to save (especially since the federal reserve drove interest rates down to near 0% for so long, which meant that savers were essentially losing value over time because the rate of inflation was higher than the interest they were earning on their savings). So markets really dictate our thought processes, our actions (we work long hours all week in order to be able to spend and have the kind of consumerist life expected of us). The markets, meanwhile, take on a life of their own… Continue Reading...

Cause and Effect Essay Example: Climate Change & Hurricanes

dollars promised in aid by Congress go?  Whose pocket gets to receive those federal reserve notes?   Perhaps the weather modifiers thought it would be a good way to jumpstart certain sectors of the economy.  Or perhaps asking such questions is as unfair as saying that this year’s hurricanes were stronger and more powerful than last year’s because of fuel emissions—or cow emissions—or whatever it is that people claim is causing climate change to be the harbinger of doom that it so wants to be.  The fact is:  climate change is a part of nature—it’s a part of history—it’s a… Continue Reading...

Should We Get a Basic Income

income that does not follow in the footpaths of central banks like the federal reserve, the Bank of England (BOE), the European Central Bank (ECB), and so on, all of which have printed up trillions in their own currencies to prop up markets since the Great Economic Crisis of 2008. What this means is that since the Great Economic Crisis, which has defined the past decade in terms of how monetary policy is conducted, the great central banks—the Fed, the ECB, the BOE—have engaged in a strategic policy of quantitative easing (QE), designed to send “trillions of euros [dollars,… Continue Reading...

The Federal Reserve and the Gold Standard

handed over the right to print money to the federal reserve, it both gave up its sovereignty to this banking cartel and the limit on money supply that the gold standard gave. Nixon tried to fix this latter problem by using the oil standard—the petrodollar was born thanks to an agreement between Saudi Arabia and the U.S. in which the former would only use USD when transacting oil exchanges—which made everyone trading oil need to get USD too. However, this prop is not as effective as a gold standard in many ways: first, the oil standard can be taken… Continue Reading...

Economic Outlook Of the Us Economy

indicators, the existing estimate of risk of recession in the U.S. economy remains at 0%. The federal reserve has adopted various measures to enhance employment and personal consumption, which are expected to have positive impacts on the return of the business cycle. U.S. economy will experience a gradual return of the business cycle in the first and second quarter of the year because of these measures by the Fed and establishment of policies that improve business fundamentals to enhance growth in the stock market and the overall U.S. economy. Businesses will continue to receive additional support in terms of… Continue Reading...

Money Economics and the Banking System

wage-effort hypothesis. Princeton University. Retrieved May 17, 2018 from http://blog.press.princeton.edu/wp-content/uploads/2013/10/camerer-chapter-16.pdf Central Banks and the federal reserve System. In possession of the author. Graeber, D. (2011) Debt: the first 5000 years. In possession of the author. Pettinger, T. (2017). Trade off between unemployment and inflation. Economics Help.org. Retrieved May 17, 2018 from https://www.economicshelp.org/blog/571/unemployment/trade-off-between-unemployment-and-inflation/   Continue Reading...

What Is Causing Inflation

metals) has skyrocketed in recent years because of loose monetary policy coming out of the federal reserve (Claeys & Darvas, 2015). This policy became so loose following the Global Economic Crisis of 2008 that the Fed kept interest rates low (which punishes savers), started buying Treasury bills hand over fist (like the rest of the world’s central banks—with the ECB even dipping into corporate bonds) in order to keep the market propped up and rates low, and all that new money worked to dilute the value of the Notes already in circulation so that the purchasing power of dollar… Continue Reading...

Ratifying the U.s. Constitution

100x less than it was when the government handed over money printing powers to the federal reserve. The U.S. has been embroiled in endless war overseas. And people’s rights seem fewer and fewer these days. So it appears the warnings of the Anti-Federalists should have been heeded. Works Cited Brutus No. 1. (1787). Constitution. Retrieved from http://www.constitution.org/afp/brutus01.htm Federalist No. 6 (n.d.). Retrieved from http://avalon.law.yale.edu/18th_century/fed06.asp Federalist No. 7 (n.d.). Retrieved from http://avalon.law.yale.edu/18th_century/fed07.asp Galles, G. (2008). The anti-federalists were right. Retrieved from https://mises.org/library/antifederalists-were-right History. (2018). U.S. Constitution ratified. Retrieved from https://www.history.com/this-day-in-history/u-s-constitution-ratified U.S. History. (2018). Anti-Federalists. Retrieved from http://www.ushistory.org/us/16b.asp   Continue Reading...

The Gold Coin's Meaning

gold coin in 1839 is now worth 100x times that in 2018 federal reserve Notes (which, it should be noted, cannot be traded in for gold—that window was closed long ago). The coinage without motto was minted from 1839 to 1866. It depicted a fatter-faced Lady Liberty, with hair flowing down the back of her head. The coinage with motto was minted from 1866-1908 and pictured the slimmer, classical beauty Lady Liberty. The Liberty Head Half Eagle designed by Gobrecht replaced the Classic Head design which had actually been worth more in gold than its price (the effect of… Continue Reading...

Political Expression in Today's World

they want. They can be considered part of the state power structure too. Then there is the federal reserve—the independent banking institution that was given the right to coin the nation’s currency in 1913. All of them take part in the manifestation of state power, which can be described as domination without coercion—the subordination of people within that state to their rule without question or revolt. In China, state power looks much more openly totalitarian: the state central plans all things and controls all aspects of society—even going so far recently as to launch a social currency system in… Continue Reading...

Leadership and the Issue Of Ethics

leads to market failure). The capital market processes were further disrupted when the federal reserve acting as the world’s central bank essentially began buying up the mortgage backed securities that no one wanted and began buying U.S. Treasuries to the tune of trillions of dollars worth in order to calm the markets and get the financial system rolling again. The Fed expanded its balance sheet exponentially and blew asset bubbles across all classes—equities, precious metals, housing, credit, etc. (Huston & Spencer, 2018). It was, in other words, the end of the free market: ever since, it has been nothing… Continue Reading...

The Banking Act and Security

appointed four Federal supervisory agencies, consisting of the Comptroller of the Currency, the Board of Governors of the federal reserve System, the Federal Deposit Insurance Corporation, and the Director of the Office of Thrift Supervision—to develop, implement and oversee the set of minimum security standards that the banks and savings and loans they regulated would have to have in order to be allowed to conduct business. Each agency essentially developed and appointed the same set of standards. The Act also obliges the agencies to direct the management of the banks so that they are more secure and in compliance… Continue Reading...

What Is the Economy

it did in the wake of the 2008 global economic crisis. The federal reserve engaged in unconventional monetary policy known as quantitative easing, which saw the central bank creating trillions of dollars out of thin air so as to buy up the mortgage backed securities and treasuries that no one wanted. The Fed stepped in as the buyer of last resort, and all the money it printed went into the economy, propping up the stock market and sending it to all time highs, leading to inflation across various asset classes (from gold to equities to real estate), higher rents,… Continue Reading...

Globalization and International Political Economy

practically all elements of this present world has been influenced by globalization. For instance, a federal reserve Bank of San Francisco report of 2010 indicated that nearly 35.6% of the garments and footwear that are retailed in the United States originated from China. This is in comparison to barely the 3.4 % of those items that were locally made in the United States. This form of trade is shown to have advantages such as the increase in Foreign Direct Investment (FDI) compared to global trading. This increase enhances technological exchange, business reformations as well as the expansion of international… Continue Reading...

Recent Immigration in the United States

& Civilizations, 1(2). Retrieved from http://jflcc.com/journals/jflcc/Vol_1_No_2_December_2013/1.pdf Orrenius, P. (2004). Immigrant assimilation: is the U.S. still a melting pot? federal reserve Bank of Dallas. Retrieved from https://www.researchgate.net/publication/5030765_Immigrant_assimilation_is_the_US_still_a_melting_pot Park, B., & Judd, C. M. (2005). Rethinking the link between categorization and prejudice within the social cognition perspective. Personality and Social Psychology Review, 9(2), 108–130. doi: 10.1207/s15327957pspr0902_2 Payant, K., & Rose, T. (1999). The immigrant experience in North American literature: Carving out a niche. Westport: Greenwood Press. Pechie, J. S. (2015). The Italian immigrants’ assimilation into American culture and the subsequent impact on food, language and last names (Master’s Thesis, University of New York… Continue Reading...