In a message dated 1/14/04 11:16:54 AM, [EMAIL PROTECTED] writes:
>In my view, there's nothing like real numbers to get your brain juices
>flowing. Note the $20-30 million that the Fed pays to the US Treasury
>each year. Exercise for the reader: why does it make that payment?
>
>-gil
The Depressi
PM
To: [EMAIL PROTECTED]
Subject: Three Fed tools, which increases money supply over time?
I have blanked and I cannot shake it. My apologies
for what seems a bonehead question. (Certainly not my
first.) Old textbooks aren't helping me, either.
There are three money supply tools used by the F
The Fed's Open Market purchases of government debt create more high powered
money, which in turn gets lent, creating more demand deposits, which in turn
create more loans, which create more demand deposits, etc. to some multiplier
that depends on the various reserve requirements of the saving/lend
I have blanked and I cannot shake it. My apologies
for what seems a bonehead question. (Certainly not my
first.) Old textbooks aren't helping me, either.
There are three money supply tools used by the Fed.
It can buy & sell bonds, it can change the reserve
requirement, or it can change the inte
