2 Answered Questions for the topic monetary policy
Hicksian IS LM framework and Conditions of Policy effectiveness
Consider closed economy described by IS-LM model:Consider closed economy described by IS-LM model:PE = Ca + MPC(Y - T) + I(r) + GAE = YM/P= L(Y,r)Case 1: Investment trap. Assume investments are nor... more
What assurances are there that the Federal Reserve does not give money to banks?
My understanding of the operation of the United States Federal Reserve Bank is that it invents dollars by a unilateral, unbalanced credit to its own account and then it loans this money to member... more