The Fed has added 3 new monetary policy tools on their webpage. Numbers 1-3 are in every economics textbook. Number 4 was new back in February when I first checked with my macro class. Numbers 5 and 6 were added in March.
- Open Market Operations
- The Discount Rate
- Reserve Requirements
- Term Auction Facility
- Primary Dealer Credit Facility
- Term Securities Lending Facility
FYI, check the Fed site again. Since the time of this post they've added four more tools. As a student of business and economics myself, I check the site from time to time to keep up with the practical side of macro- and monetary economics.
Posted by: Ted P. Binger | November 03, 2008 at 04:58 AM