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