Wednesday I asked the students to write about their personal opinion concerning what course of action the Federal Reserve/U.S. will eventually take: debt monetization, default, or an era of major spending cuts and higher taxes.
Friday, November 12, 2010
Day 51-53 (10th-12th)
We've been continuing our study of the institution that is the Federal Reserve, both its origin and its modern day structure. We've discussed the three main tools of conducting monetary policy, namely Open Market Operations, the Discount Window, and Reserve Requirements. Students should understand how each works and how each affects the money supply.
