Economics 470/570
Fall 2011
Due: Thursday, 10/13
1. Briefly, how do nominal interest rates, ex-ante real interest rates, and ex-post real interest rates differ? Of the two real rates, which is the most important for understanding economic decisions?
2. Besides pooling risk, pooling small deposits, and pooling over time, what else do financial intermediaries do to increase the efficiency of financial markets?
3. Who is on the FOMC? What does the FOMC do?
4. How has the power structure of the Fed changed over time?
