Beruflich Dokumente
Kultur Dokumente
McGraw-Hill/Irwin Copyright 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Learning Objectives
12-3
Introduction Central Bank
12-4
The Roles of Central Banks
Control of the money supply
Linked to economic activity
Linked to price inflation
Stabilizing the money and capital markets
Fostering their development
Ensuring a stable flow of funds
12-6
The Worlds Leading
Central Banks
12-7
The Goals of Central Banking
12-8
The Goals of Central Banking
12-9
The Channels Through Which
Central Banks Work
Cost & availability of
credit
12-11
Problems in the Early
U.S. Banking System
Prior to the Civil War, the states controlled the
banking system
Many did a poor job
The high failure rate among poorly capitalized and ill-
managed banks resulted in heavy losses
12-12
Creation of the
Federal Reserve System
The Federal Reserve Act was signed in
1913
Twelve Federal Reserve banks were
chartered
They opened for business as World
War I began in Europe
12-13
How the Fed is Organized Today
12-15
Roles of the Federal Reserve
System Today
Serving as the central governments fiscal
agent, by holding the Treasurys checking
account and by maintaining reasonable
stability in the government securities market
12-16
The Key Focus of
Central Bank Monetary Policy
Regulating money and credit conditions to
strengthen the economy
12-17
The Key Focus of
Central Bank Monetary Policy
12-18
Reserve Composition
12-19
The Deposit Multiplier
12-20
The Deposit Multiplier
12-21
The Deposit Multiplier
12-23
The Deposit Multiplier
12-24
Money Multiplier
Monetary base
Also known as high-powered money
Linked to M2 through the money
multiplier
12-27
Money Multiplier
12-28
Money Multiplier
RRd + EXR + CD
12-30
Markets on the Net
Answers.com at
www.answers.com/topic/lender-of-last-resort
and
www.answers.com/topic/high-powered-money
Bank of England at
www.bankofengland.co.uk
Bank of International Settlements at
www.bis.org
Bank of Japan at www.boj.or.jp
BanxCorp at banx.com
12-31
Markets on the Net
Federal Reserve at
www.federalreserve.gov
Federal Reserve Bank of Kansas City at
www.kc.frb.org
Federal Reserve Bank of Minneapolis at
www.mpls.frb.org
Federal Reserve Bank of New York at
www.ny.frb.org
Federal Reserve Bank of St. Louis at
www.stls.frb.org/research
12-33
Markets on the Net
12-38