What about the non-traditional channels of monetary policy

Assignment Help Business Management
Reference no: EM13865129

A "rate cycle" is a period in monetary policy during the federal funds rate moves from its low point toward its high point, or vice versa, in response to business cycle conditions.?Go to the St. Louis Federal Reserve FRED database, and find data on:?- Federal Funds Rate (FEDFUNDS)

- Real business fixed investment (PNFIC96)?-
- Real residential investment (PRFI96), and?
- - Consumer Durable Expenditures (PCDGCC96)?For the Federal Funds Rate,
- change the frequency setting to "Quarterly". Download all the data into
- a spreadsheet.

Part 1. When did the last rate cycle begin and end?

When was the previous rate cycle? (Note: if a rate cycle is currently in progress, use the current period as the end). Is this rate cycle a contractionary or expansionary rate cycle? Describe and explain economic events behind these cycles. (Limit: 700 words)

Part 2. Calculate the percentage change in business fixed investment, residential (housing) investment, consumer durable expenditures over these two rate cycles. Based on your answer in Part 1 and your calculations, how effective was the traditional interest rate channel of monetary policy over these rate cycles? Fully explain reasons for these differences and if possible use models presented in this course such as the Aggregate Demand and Aggregate Supply model.

Part 3. What do you think about the non-traditional channels of monetary policy? Could you provide an example of a variable or set of variables that could show non-traditional channels of monetary policy? Describe and explain.

Reference no: EM13865129

Questions Cloud

The world benefit from the general imposition of controls : Would the world benefit from the general imposition of controls on the movement of international finance?
Write a complete java program called scorer : Write a complete Java program called Scorer that declares a 2-dimensional array of doubles called scores with three rows and three columns. Use a nested while loop to get the nine (3 x 3) doubles from the user at the command line. Finally, use a nest..
Describe in very general terms the as-is business process : Describe in very general terms the as-is business process for registering for courses at your university. Collaborate with another student in your course and evaluate the process using problem analysis and root cause analysis.
Spin questioning system : The ADAPT questioning system is similar to the SPIN questioning system in that
What about the non-traditional channels of monetary policy : What do you think about the non-traditional channels of monetary policy? Could you provide an example of a variable or set of variables that could show non-traditional channels of monetary policy? Describe and explain.
Explain the meaning of array index out of bounds : Explain the meaning of "array index out of bounds".
Describe marketing method used in the commercial : In detail, describe marketing method used in the commercial and describe a similar commercial that was less effective message
The relative merits of using gny statistics with those of va : Compare the relative merits of using GNY statistics with those of various basic needs indicators when assessing both the level and the rate of a country's economic development.
What is the process capacity in units per hour : What is the process capacity in units per hour? Circle the answer below that is closest to the correct answer. A unit refers to a complete scooter frame

Reviews

Write a Review

 

Business Management Questions & Answers

  Explain how grocers could reduce the health insurance cost

Explain how the grocers could reduce the health insurance benefits and the cost of their total benefits package without making any employees pay more.?

  Questionanalyzing the impact on employees managers and

questionanalyzing the impact on employees managers and directors of european union directives in respect of employment

  Provide a brief historical view of the organization

The area of research should be described and the purpose of the research. That is, describe the topic area in terms of (a) its relationship to the topic and (b) what you want to be able to contribute to the training literature

  Illustrate industry or sector for your idea

Show others they too should support your idea. Have clear objective. What are you researching? why? Present data or information. To illustrate industry or sector for your idea.

  Analyze the ways in which the u.s. government regulates

Analyze the ways in which the U.S. government regulates product safety as well as make at least one recommendation for how the regulatory approach of one agencies discussed

  Which concept can be applied to assist in explain decision

Making use of your understanding of quantitative decision making terminology, which concept(s) can be applied to assist in explaining Mr. Jones' decision to fire the individuals he hired and employee his son instead?

  Explaining top five leading trading nations

Do some preliminary research on the following topics: Top five traded commodities over the past five years and Top five leading trading nations.

  Diversity is desirable for innovation

"Diversity is desirable for innovation, flexibility, and organizational success."

  Needs assessment for training

How does having one unsuccessful training program impact the acceptance of future training and development efforts.

  Struggling company retain employees without losing them

Explain how can a struggling company retain their employees without losing them? for example, if each department is needing some form of compensation

  Learning in different countries

How can an organization in different countries implement learning and Learning in Different Countries

  Discussed the importance of information systems

Discussed the importance of information systems for organizations. But what about for the individual employee not in IT? How can knowledge about information systems help you in your business career?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd