Chapter 4. Money .
Parts of Chapter 4 in the previous edition are now in Chapter 5 of the eighth edition
Homework p. 100, # 2, 4
Link to syllabus
Table 4-1 p. 86. The Measures of Money
The Federal Reserve System. Other Text
OMC Meeting (early 2012?)
Open Market Committee Seating
RollerCoaster joke
GreenspanJoke
The Monetary Base and the Money Supply. (intro text)
How Banks Create Money. (Intro text)New Loans Total(this Newstage) Loans
900 900
810 1,710
Fourth stage 729 2,629 3,439 729 2 ,439
Reserve Requirements, US, 2006. (different intro text).
If reserve requirements are small, the money multiplier is large – except that people keep cash.
Figure 4-1, p. 95 Quantitative Easing
Point is that the increase in the monetary base has not led to highermoney supply, nor to inflation, because banks have accumulated excess reserves, because private sector hasn’t borrowed.
Source: Fed of St. Louis: Monetary Trends (Sept. 2012)
Excess Reserves
Table 4.2 p. 97 The Money Supply and its Determinants,
1929 and 1933.