0
What type of policy does the fed use to counteract a contraction?
Wiki User
∙ 9y ago
The fed uses an expansionary monetary policy when dealing with a contraction. On the other hand, when dealing with a expansion that is resulting in higher interest rates, the fed uses a tight money policy.
Wiki User
∙ 9y ago
Add your answer:
Earn +20 pts
Why did Fed communicated changes in its monetary policy by announcing changes in its policy targets?
In recent years the Fed has communicated changes in its monetary policy by announcing changes in its policy targets for the:
What is the Fed's most powerful tool for influencing monetary policy?
By and large, open-market operations comprise the most powerful tool the Fed has to influence monetary policy.
Which is not a policy tool used by the Fed?
Making tax cuts
When and why the fed use expansionary monetary policy?
I don’t know the answer .help
Which fed entity issues the nation's monetary policy directive?
FOMC
What type of policy does the fed to counteract a contraction?
The fed uses an expansionary monetary policy when dealing with a contraction. On the other hand, when dealing with a expansion that is resulting in higher interest rates, the fed uses a tight money policy.
Why did Fed communicated changes in its monetary policy by announcing changes in its policy targets?
In recent years the Fed has communicated changes in its monetary policy by announcing changes in its policy targets for the:
What was the fed trying to do with it monetary policy during the past two years?
It is difficult to say what the Fed was trying to do during the last two years with monetary policy based on your question. We do not know if the Fed is a person or group, and we do not know which monetary policy.
What was the purpose of the roman policy of bread and circues?
What is the Fed's most powerful tool for influencing monetary policy?
By and large, open-market operations comprise the most powerful tool the Fed has to influence monetary policy.
Which is not a policy tool used by the Fed?
Making tax cuts
How does the Fed implement interest rate cuts Or How does the Fed force all banks to lower their interest rates?
monetary policy
What was the federal monetary policy in August 2007?
Acts of the Federal Reserve are secret, I don't believe there is any way to know the answer to this question. The Federal Reserve has had an expansionary monetary policy for some years now. This is very evident by their interest rate moves. Lower interest rates expands (hence the term) the money supply. This kind of policy is what the Fed should do when faced with a weakening economy or a liquidity crisis. It is the opposite of what happened during the Great Depression, when the Fed had a contraction monetary policy. In short, an expansionary monetary policy is characterized by lowering of interest rates (characterized by the buying of bonds and lowering of the Federal Funds Rate target, which has obviously happened), a decrease in the discount window (again, obvious), and lowering of the Reserve Ratio. The RR is kind of the "nuclear option" for the Fed, and it is very very rarely ever changed. Now, in August 2007 in particular, that Fed kept the Federal Funds Rate the same but lowered the discount window. See attached link for a history of the Fed interest rate moves.
What is the primary function of Fed's Board of Directors?
set monetary policy
What is the fed's most important monterary policy too?
Police officers
Which fed entity issues the nation's monetary policy directive?
FOMC
When and why the fed use expansionary monetary policy?
I don’t know the answer .help
