What is meant by the federal funds rate? How it is associated with the monetary policy makers and the monetary policy?

answer

watching

205

views

For unlimited access to Homework Help, a Homework+ subscription is required.

You have 0 free answers left.
Get unlimited access to 3.8 million step-by-step answers.

Get unlimited access

Already have an account? Log in

Elin HesselLv2

7 Feb 2019

Unlock all answers

Get 1 free homework help answer.

Already have an account? Log in

Related questions

For many years, the overall economic policy of the United States has been a balancing act between fiscal policy and monetary policy. Explain what is meant by the following:

(A). Fiscal policy

How is fiscal policy set?

Who sets fiscal policy?

How does this policy affect the economy?

(B) Monetary policy

How is monetary policy set?

Who sets monetary policy?

How does this policy affect inflation, the economy?

peardeer973

Explain what is meant by transmission mechanism of monetary policy? What are the main mechanisms (channels) through which monetary policy is transmitted and how might they have changed with the financial crisis?

orangelouse803

In this section of the course, the formulation and implementation of monetary policy are discussed. One of the main issues of monetary policy is that of the appropriate target and indicator of monetary policy. There are two main targets of monetary policy I want you to concern yourself with the interest rate target and the inflation target. The Federal Reserve has been targeting interest rates, most notably the federal funds rate, to guide monetary policy. However, many believe the Fed should target inflation. What target do you think the Fed should aim at interest rates or inflation rates? Please explain why.