Crs Report for Congress: Monetary Policy and the Federal Reserve: Current Policy and Conditions - Couverture souple

LaBonte, Marc

Couverture souple

ISBN 10 : 1289422931 ISBN 13 : 9781289422936

Editeur : Bibliogov, 2013

Synopsis

The Federal Reserve (Fed) defines monetary policy as the actions it undertakes to influence the
availability and cost of money and credit. Because the expectations of market participants play an
important role in determining prices and growth, monetary policy can also be defined to include
the directives, policies, statements, and actions of the Fed that influence how the future is
perceived. In addition, the Fed acts as a "lender of last resort" to the nation's financial system,
meaning that it ensures continued smooth functioning of financial intermediation by providing
financial markets with adequate liquidity. This role has become of great importance following the
onset of the recent financial crisis.
Traditionally, the Fed has three means for achieving its goals: open market operations involving
the purchase and sale of U.S. Treasury securities, the discount rate charged to banks who borrow
from the Fed, and reserve requirements that governed vault cash or deposits with the Fed as a
proportion of deposits. Historically, open market operations have been the primary means for
executing monetary policy. Recently, in response to the financial crisis, direct lending became
important once again and the Fed has created a number of new ways for injecting reserves, credit,
and liquidity into the banking system, as well as making loans to firms that are not banks. As
financial conditions normalized, direct lending tapered off. Emergency lending programs have
been wound down, with the exception of foreign central bank liquidity swaps.

Détails de l'édition

• Éditeur: Bibliogov
• Date d'édition: 2013
• Langue: anglais
• ISBN 10: 1289422931
• ISBN 13: 9781289422936
• Reliure: Broché
• Nombre de pages: 24
• Coordonnées du fabricant: non disponible
• Personne responsable: non disponible