Money, Interest Rates, and Monetary Policy
- Why do interest rates matter?
- What economic goals does the Federal Reserve seek to achieve through its monetary policy?
- What is forward guidance, and how is it used in the Federal Reserve's monetary policy?
- Why does the Federal Reserve pay banks interest?
- What does the Federal Reserve mean when it says monetary policy is “accommodative” or “restrictive”?
- Why has the size of the Federal Reserve’s balance changed over time?
- How does the Federal Reserve's buying and selling of securities relate to the borrowing decisions of the federal government?
- How does the Federal Reserve affect inflation and employment?
- What is the money supply? Is it important?
- What is the difference between monetary policy and fiscal policy, and how are they related?
- What is the Statement on Longer-Run Goals and Monetary Policy Strategy, and why does the Federal Open Market Committee publish it?
- What is the basic legal framework that determines the conduct of monetary policy?