Education: A Better Tomorrow

Distance Learning College

You get to learn over the internet from an online university that has already been recognized for providing education of an acceptable level, which is the main feature of an accredited distance learning college. In fact, such a form of education has of late begun to attract many people who prefer such education to going to a college. You get the same quality of education as you would if you were to attend a regular college or university, which is the the main reason for such a preference.

Broad Horizons

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Bond Fundamentals – Monetary Policy and Fiscal Policy

It’s the Federal Reserve Bank that influences the money supply. Three tools are used to implement monetary policy:

Open Market Operations
Discount Rates
Reserve Requirements

Since open market operations is the tool used most, we will cover it. Here’s how it works: When the economy is growing too fast and the Fed is worried about the inflation rate, it will sell government securities from its portfolio to the open market. This decreases bank reserves, which means the money supply decreases. When there are less bank and businesses have to pay the bank more in order to borrow. This discourages consumers and businesses from borrowing. Less borrowing means less spending, which slows the economy and eventually can reduce price pressures.

Monetary policy and long-term interest rates: a survey of empirical literature.

This paper surveys recent empirical literature on effects of monetary policy on long-term interest rates. Most studies reviewed here suggest that tightening monetary policy results in higher long-term interest rates. But available evidence suffers from conceptual and empirical problems and fails to indicate the magnitude of short-run and long-run policy effects on long rates. Also, recent studies have not investigated the possibility of shifts in recent-year effects of monetary policy on long rates. Finally, the paper offers a policy perspective on limitations of existing evidence and suggests future research on monetary policy effects on long rates.

I. INTRODUCTION

Education: A Better Tomorrow

Distance Learning College

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Bond Fundamentals – Monetary Policy and Fiscal Policy

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Monetary policy and long-term interest rates: a survey of empirical literature.

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