1 / 6

Chapter 11 Money and the Economy

Chapter 11 Money and the Economy. Money Supply and Prices. Inflation Deflation Money Supply $ in circulation Increase = inflation Decrease= deflation Controlled by Federal Reserve Bank. Money Supply and Inflation. Federal Reserve Bank. Created in 1913 to oversee banking

magallanes
Download Presentation

Chapter 11 Money and the Economy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 11Money and the Economy

  2. Money Supply and Prices • Inflation • Deflation • Money Supply • $ in circulation • Increase = inflation • Decrease= deflation • Controlled by Federal Reserve Bank

  3. Money Supply and Inflation

  4. Federal Reserve Bank • Created in 1913 to oversee banking • Controls monetary policy • Money supply • Interest rates • Reserve requirements • Chairman Ben Bernanke

  5. Open Market Operations • Buying/Selling of Securities • Buys: Increases Money Supply • Cash in hands of consumers • Sells: Decreases Money Supply • Cash in hands of govt. • Affects value of dollar

  6. Monetary Policy • Federal Reserve Actions • Designed to stabilize the economy • Sometimes makes it worse • Lag time 2-4 Quarters • Ex. Creation of Housing Bubble • Interest rates too low

More Related