宏观经济学HUBBARD_MACRO_SG_14的.pdfVIP

Chapter14(26)

MonetaryPolicy

ChapterSummary

InChapter13,youlearnedthatbanksplayanimportantroleincreatingthemoneysupplyandinhowthe

Fedmanagesthemoneysupply.InChapter14,youwilllearnaboutmonetarypolicy,theactionstheFed

takestomanagethemoneysupplyandinterestratestopursueitsmacroeconomicpolicyobjectives.The

Fedhassetfourmonetarypolicygoalsthatareintendedtopromoteawell-functioningeconomy:

1.Pricestability

2.Highemployment

3.Economicgrowth

4.Stabilityoffinancialmarketsandinstitutions

TheFed’smonetarypolicytargetsareeconomicvariablesthatitcanaffectdirectlyandthatinturnaffect

variablessuchasrealGDPandthepricelevelthatarecloselyrelatedtotheFed’spolicygoals.The

FederalOpenMarketCommitteeannouncesatargetforthefederalfundsrateaftereachmeeting.The

federalfundsrateistheinterestratebankschargeeachotherforovernightloans.

Tofightarecession,theFedconductsexpansionarymonetarypolicy,whichlowersinterestratesto

increaseconsumption,investment,andnetexports.Toreducetheinflationrate,theFedconducts

contractionarymonetarypolicy,whichraisesinterestratestodecreaseconsumption,investment,and

netexports.Overthepastdecade,manyeconomistsandcentralbankershaveexpressedsignificant

interestinusinginflationtargeting,underwhichmonetarypolicyisconductedtocommitthecentral

banktoachievingapubliclyannouncedinflationtarget.Anumberofforeigncentralbankshaveadopted

inflationtargeting,buttheFedhasnot.

LearningObjectives

Whenyoufinishthischapter,youshouldbeableto:

1.DefinemonetarypolicyanddescribetheFederalReserve’smonetarypolicygoals.