Money, Banking, and International Finance- Identify the costs and benefits by imposing a 100% reserve requirement for banks.
- Identify the Fed’s six monetary policy goals.
- What are the time lags, and why do they cause problems for monetary policy?
- Explain why the Fed uses targets.
- Distinguish between an operating target and an intermediate target.
- Identify the criteria for selecting intermediate targets.
- Explain pro-cyclical monetary policy, and explain why it occurs.
- Which intermediate targets have economists suggested the Fed use?