ECON 2020 Lecture Notes - Lecture 19: Reserve Requirement, Yield Curve, Federal Open Market Committee
Document Summary
Role of money: medium of exchange - transactions, unit of account - (comparing) prices, store of value - savings. Bitcoins - electronic or digital currency: created through mining, silk road - anything goes internet site, pros. Hq - board of govs (washington dc) 12 regional reserve banks: san francisco, kansas city, saint louis, minneapolis, chicago, cleveland, boston, Fomc - federal open market committee: fomc = chair(jannit yellen) + 6 political(serve 14 year term) + 5/12 regional. !1: from 1913 federal revenue act jannit yellen is the rst female chair. (serve up to. Reserve requirement = 10: paycheck ,000, this means bank has to put in reserve. Example : chase receives mill. Bank of america can borrow mil, wells fargo can borrow mil. Open market operations(omo) - adjusting bank excess reserves. Big picture: fomc meets every other month plus december. #1 concern is in ation (only tolerate 2% in ation: lag in monetary policy.
