第11讲货币供给与金融市场 - 中国经济学堂.pptVIP

* * * Why it’s called “open market operations”: The “operations” are the buying and selling. The market in which U.S. Treasury bonds are traded is “open” in the sense that anyone---you, me, the Fed---can buy or sell in this market. * * * Why not reserve requirements?Making them too low creates a risk of bank runs. Making them too high makes banking unprofitable. In addition, banking would be difficult if the Fed changed reserve requirements frequently. * * This slide presents the equation for the Taylor Rule in terms of the real Fed Funds rate, denoted here as rff, The textbook (p. 396) shows the equation for the nominal Fed Funds rate. The two, of course, are equivalent: the equation here simply subtracts the inflation rate from both sides of the equals sign. I believe that the equation on this slide looks more straightforward and is easier to interpret than that presented on p. 396. Please compare the equations for yourself to see if you agree. In case you prefer the equation on p. 396, I’ve prepared two “hidden” slides that give the information on this and the next slide, but in terms of the nominal Fed Funds rate and the equation from p. 396 of the textbook. Simply “unhide” slides 31 and 32, and “hide” slides 29 and 30, and you’ll be good to go. In any case, if you have strong feelings one way or the other, please email me and I will take your input into account when I prepare the 2003 and 2004 annual updates to the PowerPoint supplement for Mankiw’s Macroeconomics, Fifth edition. Thanks, Ron  roncron@unlv.edu * * If Greenspan follows the Taylor rule, then we would expect the actual Fed Funds rate to be very close to the rate implied by the Taylor rule, which appears to be the case. This graph is very similar to Figure 14-2 on p.397 of the text, with some small differences in the computation of the Taylor rule. First, I used the CPI to measure inflation, while the text uses the GDP deflator. Second, I use the Commerce Department