Brief Outline of Topics Covered in Lecture 4
Chapter 11 The Economics of Financial Intermediation
Function of Financial Intermediaries [cont.]
- Adverse selection
- Moral hazard
Chapter 16 Structure of Central Banks and the Federal Reserve System
Origins of the Federal Reserve System
- Distribute power to geographic regions, the public sector, the private sector, the business sector, and the financial sector
Formal Structure of the Federal Reserve System
- Federal Reserve Banks
- Member Banks
- Board of Governors of the Federal Reserve System
- Federal Open Market Committee (FOMC)
- The Federal Advisory Council (FAC)
Informal Structure of the Federal Reserve System
- How Power Has Been Centralized Over Time
How Independent is the Fed?
Should The Fed Be Independent?
- The Case for Independence
- The Case Against Independence
Chapter 17 Multiple Deposit Creation and the Money Supply Process
Four Players in the Money Supply Process
The Fed’s Balance Sheet
- Liabilities
- Assets
Control of the Monetary Base
- Open Market Operations with Bank
- Open Market Operations with an Individual and shifts between Currency and Deposits
Video:
Additional Reading:
- The St. Louis Fed Financial Stress Index - MacroMania
- IMF Floats Bond-Buying Proposal in Europe - WSJ.com
- Expanding access to elite education - Vox EU
- Do Financial Markets Separate News from Noise? - Liberty Street
- Inflation expectations: a downward march - MacroMania
- Slow growth continues - Econbrowser
- Keynes and Econometrics - Dave Giles
- The Tribal Dislike of John Hicks and IS-LM - Brad DeLong
- Europe Finds Slope Ahead Is Growing Ever Steeper - NYTimes.com
- Goldman: U.S. recession probability at 40% in 2012 - Calculated Risk
- Economic Outlook and Recent Monetary Policy Actions - Ben Bernanke
Application:
Continuing our recent discussion on inflation expectations:
Inflation expectations: a downward march, by David Andolfatto: This graph is courtesy of my colleague, Kevin Kliesen.
If you squint your eyes near the end of the sample, you'll see that Operation Twist appeared, on impact, to move short and long inflation expectations in opposite directions. The effect did not last long, however. The march downward continues--for now, at least.
