金融市场与机构英文版第四章
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policy matters
Organization of the Federal Reserve
n Federal Open Market Committee (FOMC)
l Monetary policy goals of:
u high employment u price stability u economic growth
Organization of the Federal Reserve
n Board of Governors has two main functions: n Regulate commercial banks
l Supervise and regulate member banks and bank holding companies
Members n Advisory Committees to Fed from private
sector
Functions of the Federal Reserve System
n Effect Monetary Policy n U.S. Central Bank In International Area n Fiscal Agent of U.S. Treasury n Facilitate Efficient Payments System n Regulate Banks and Bank Holding Co. n Enforce Consumer Credit Laws
l 12 members
u 7 from the Board of Governors u President of the New York Fed u 4 other district bank presidents appointed on a rotating
basis u Other presidents participate but do not vote on monetary
CHAPTER
4
The Fed and Monetary Policy
© 2003 South-Western/Thomson Learning
Chapter Objectives
n Identify the Fed’s role in monetary policy n Describe the tools the Fed uses to influence
members
Organization of the Federal Reserve
n Board of Governors
l 7 individuals appointed by the U.S. president and confirmed by the Senate
l U.S. president appoints one of the 7 chair whose 4-year term is renewable
u Shifts supply of federal funds to the right u Lowers federal funds rate u Lower rates spread to other money market securities
l More funds available for money market and bank lending
l Direct control over two tools of monetary policy
u Set reserve requirements u Approve discount rate set by district banks
l Indirect control in a third area
Organization of the Federal Reserve
n Federal Reserve District Banks
l 12 districts l Districts divided by population at 1912–13 l District bank size related to economic wealth of
l Most rates are market determined but Fed influences federal funds interest rate
l Fed purchase of securities results in an injection of additional funds into the bank system
Monetary Policy Tools
n Adjusting the discount rate
l Depository institutions borrow from Fed for three reasons:
u Adjustment credit for short-term reserve deficiencies u Seasonal credit to agricultural banks u Extended credit for longer-term liquidity problems of
district l District banks owned by private member banks l Board of Directors of district banks
u Three appointed by Board of Governors u Three professional bankers u Three business persons in district
l Increases the money supply
Exhibit 4.4
Increase in deposits at banks
$100 million
$90 million
$81 million
Required reserves held on
new deposits
$10 million
Discount Rate
How Fed Controls Money Supply
n Banks must maintain reserves as percent of deposits
n Reserves kept as deposits in Fed (plus vault cash)
n Fed controls level of member bank reserve deposits in Fed
n Second Bank of the United States (1816–1836)
n Federal Reserve System (1913–)
Structure of the Federal Reserve System
n 12 Fed District Banks n Member Commercial Banks n 7 Members of Board of Governors n 14 year terms for Governors n 12 Open Market Committee (FOMC)
l Make monetary policy decisions to achieve goals l Forward decisions to N.Y. Fed open market desk
n Advisory committees from private sector also are a part of overall structure of the Fed
u Governors are members of the Federal Open Market Committee
Organization of the Federal Reserve
n Federal Open Market Committee (FOMC) meets every 6 weeks
n Open market purchase of government securities:
l Purchase securities from government securities dealers
l Increase bank deposits and bank reserves, money market liquidity and, in time…
Business and Consumer Borrowing/Spending
Goals of Growth Price Stability Job Growth
Tools of Monetary Policy
Open Market Op.
Tools of Monetary
Policy
Reserve on Economy
n Fed influences liquidity (supply of loanable funds) in money market to influence:
Liquidity, Money Supply
and Interest Rates
monetary policy n Explain how changes in regulation in the
1980s affected the Fed and monetary policy
Federal Reserve System: Third U. S. Central Bank
n First Bank of the United States (1791–1811)
Organization of the Federal Reserve
n Member Banks
l Must meet requirements of the Federal Reserve Board of Governors to be a member bank
l Nationally chartered banks must be member banks l State chartered banks may be member banks l 35% of banks controlling 70% of all deposits are
n Fed influences bank deposit portion of money supply
Monetary Policy Tools
n Open market operations involve the purchase or sale of government securities based on FOMC directives sent to N.Y. Fed Trading Desk
l Offices in Washington, D.C. l Serve nonrenewable 14-year terms l Independence of Federal Reserve
u Staggered terms of Governors u Budget separate from Congress
Funds received from new deposits that can be lent out
$90 million
$9.0 million
$81 million
$8.1 million
$72.9 million
Monetary Policy Tools
n Open market operations and interest rates
l Oversight of 12 Fed district banks l Establish consumer finance regulations after
Congressional legislation
Organization of the Federal Reserve
n Establish and effect monetary policy
Organization of the Federal Reserve
n Federal Open Market Committee (FOMC)
l Monetary policy goals of:
u high employment u price stability u economic growth
Organization of the Federal Reserve
n Board of Governors has two main functions: n Regulate commercial banks
l Supervise and regulate member banks and bank holding companies
Members n Advisory Committees to Fed from private
sector
Functions of the Federal Reserve System
n Effect Monetary Policy n U.S. Central Bank In International Area n Fiscal Agent of U.S. Treasury n Facilitate Efficient Payments System n Regulate Banks and Bank Holding Co. n Enforce Consumer Credit Laws
l 12 members
u 7 from the Board of Governors u President of the New York Fed u 4 other district bank presidents appointed on a rotating
basis u Other presidents participate but do not vote on monetary
CHAPTER
4
The Fed and Monetary Policy
© 2003 South-Western/Thomson Learning
Chapter Objectives
n Identify the Fed’s role in monetary policy n Describe the tools the Fed uses to influence
members
Organization of the Federal Reserve
n Board of Governors
l 7 individuals appointed by the U.S. president and confirmed by the Senate
l U.S. president appoints one of the 7 chair whose 4-year term is renewable
u Shifts supply of federal funds to the right u Lowers federal funds rate u Lower rates spread to other money market securities
l More funds available for money market and bank lending
l Direct control over two tools of monetary policy
u Set reserve requirements u Approve discount rate set by district banks
l Indirect control in a third area
Organization of the Federal Reserve
n Federal Reserve District Banks
l 12 districts l Districts divided by population at 1912–13 l District bank size related to economic wealth of
l Most rates are market determined but Fed influences federal funds interest rate
l Fed purchase of securities results in an injection of additional funds into the bank system
Monetary Policy Tools
n Adjusting the discount rate
l Depository institutions borrow from Fed for three reasons:
u Adjustment credit for short-term reserve deficiencies u Seasonal credit to agricultural banks u Extended credit for longer-term liquidity problems of
district l District banks owned by private member banks l Board of Directors of district banks
u Three appointed by Board of Governors u Three professional bankers u Three business persons in district
l Increases the money supply
Exhibit 4.4
Increase in deposits at banks
$100 million
$90 million
$81 million
Required reserves held on
new deposits
$10 million
Discount Rate
How Fed Controls Money Supply
n Banks must maintain reserves as percent of deposits
n Reserves kept as deposits in Fed (plus vault cash)
n Fed controls level of member bank reserve deposits in Fed
n Second Bank of the United States (1816–1836)
n Federal Reserve System (1913–)
Structure of the Federal Reserve System
n 12 Fed District Banks n Member Commercial Banks n 7 Members of Board of Governors n 14 year terms for Governors n 12 Open Market Committee (FOMC)
l Make monetary policy decisions to achieve goals l Forward decisions to N.Y. Fed open market desk
n Advisory committees from private sector also are a part of overall structure of the Fed
u Governors are members of the Federal Open Market Committee
Organization of the Federal Reserve
n Federal Open Market Committee (FOMC) meets every 6 weeks
n Open market purchase of government securities:
l Purchase securities from government securities dealers
l Increase bank deposits and bank reserves, money market liquidity and, in time…
Business and Consumer Borrowing/Spending
Goals of Growth Price Stability Job Growth
Tools of Monetary Policy
Open Market Op.
Tools of Monetary
Policy
Reserve on Economy
n Fed influences liquidity (supply of loanable funds) in money market to influence:
Liquidity, Money Supply
and Interest Rates
monetary policy n Explain how changes in regulation in the
1980s affected the Fed and monetary policy
Federal Reserve System: Third U. S. Central Bank
n First Bank of the United States (1791–1811)
Organization of the Federal Reserve
n Member Banks
l Must meet requirements of the Federal Reserve Board of Governors to be a member bank
l Nationally chartered banks must be member banks l State chartered banks may be member banks l 35% of banks controlling 70% of all deposits are
n Fed influences bank deposit portion of money supply
Monetary Policy Tools
n Open market operations involve the purchase or sale of government securities based on FOMC directives sent to N.Y. Fed Trading Desk
l Offices in Washington, D.C. l Serve nonrenewable 14-year terms l Independence of Federal Reserve
u Staggered terms of Governors u Budget separate from Congress
Funds received from new deposits that can be lent out
$90 million
$9.0 million
$81 million
$8.1 million
$72.9 million
Monetary Policy Tools
n Open market operations and interest rates
l Oversight of 12 Fed district banks l Establish consumer finance regulations after
Congressional legislation
Organization of the Federal Reserve
n Establish and effect monetary policy