Federal funds [ad_1] The European Central Bank (ECB) uses the interest rate tool to achieve its objectives. Among the bank’s many objectives, price stability is of primary importance. The refinancing rate, sometimes labeled “refi” rate, is considered to be the equivalent of the federal funds rate in the United States. In 2008, the refinancing rate […]
An open market purchase [ad_1] Do you think an open market purchase should be considered as an expansionary monetary policy measure? Why? Briefly explain the reasons for your answer. [Button id=”1″]
An open market purchase Read More »
Money supply curve [ad_1] In the following graph of the money market, what could cause the money supply curve to shift from MS1 to MS2? What could cause the money demand curve to shift from MD1 to MD2? [Button id=”1″]
Money supply curve Read More »
The Economist notes [ad_1] The primary objective of many central banks, including the Reserve Bank of India and the Bank of Korea, is price stability. Briefly explain why. Q270: Reflecting the current extremely low long-term interest rates in the Eurozone, The Economist notes: “Higher Inflation may be needed to leave extra- low interest rates behind”. Explain how
The Economist notes Read More »