Central Banks, Monetary Policy, and the Economy
This chapter starts by providing a brief history of the Federal Reserve System (the Fed), the central bank of the United States. Then, I go over the tools that the Fed uses to conduct monetary policy. The chapter provides historical perspective of what we
- PDF / 4,103,422 Bytes
- 292 Pages / 433.701 x 612.284 pts Page_size
- 38 Downloads / 234 Views
Money
Understandings and Misunderstandings
Money
Mohammad Ashraf
Money Understandings and Misunderstandings
Mohammad Ashraf Department of Economics and Decision Sciences The University of North Carolina at Pembroke Pembroke, NC, USA
ISBN 978-3-030-50377-2 ISBN 978-3-030-50378-9 (eBook) https://doi.org/10.1007/978-3-030-50378-9 © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2020 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Palgrave Macmillan imprint is published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland
To those who set out for Ithaka.
Preface
I wrote this book to clarify the concept of money and how money facilitates a smooth functioning of the economy. Depending upon one’s lack of understanding, often the conduct of monetary policy—changes in money supply by the Federal Reserve System (the Fed), central bank of the United States—is considered shady if not outright illegal. In the aftermath of the 2007–2009 financial crisis and the Great Recession that followed, the Fed significantly increased money supply. The terms “quantitative easing” became ubiquitous in the media and everyday discourse. Critiques of the Fed’s actions followed. Movements that call for the Fed to close its door resurfaced. Ron Paul, former Congressman from Texas, wrote a book in 2009 titled End the Fed. Mr. Paul dedicated his book to “the young people who … are at the heart of the anti-Fed movement.”1 Rick Perry, who was governor of Texas at the time, was seeking the Republican nomination for the 2012 presidential election. He called the actions of the Chairman of the Fed at the time, Mr. Ben Bernanke, “treasonous.” In a campaign stop in Iowa on August 16, 2011, he reiterated his opposition t
Data Loading...
