...Assignment #2: Working with Federal Reserve’s Publications Melis Metin Instructor: Prof. Winston Edmonston-Deigh Money and Banking-ECO320 February 1, 2011 Describe the Federal Reserve’s assessment of the current economic activity and financial markets. According to the staff review of the Federal Reserve, consumer spending increased significantly in 2010. Private investment in the form of business outlays for equipment and software is showing a sustainable growth. Construction activities, on the other hand, in both residential and nonresidential sectors of the construction industry are weak. The Fed’s staff observes that the industrial production increased solidly in the recent months due to the colder weather boosting the activities in the utilities. Even though there is a modest gain in employment, unemployment remained high. The trade deficit narrowed slightly in the last months of 2010 due to the increase in agricultural goods exports. The rise in imports was due to the increases in the value of the petroleum products. In the imports front, the Fed observes that the imports of automotive products, services, and consumer goods declined significantly. The Fed expects that the trade deficit will improve over the coming months. In the financial markets front, the Fed observes that short-term funding markets sustained their stability. As for then capital markets, broad U.S. stock price indexes increased. In fact, bank stock prices increased...
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...1. As a CEO, you are trying to acquire a foreign firm. The size of your firm will double, and it will become the largest in your industry. What does your firm do and what does the foreign firm you are trying to acquire do? Where are the firms based? My firm is an architecture firm. An architecture firm is a company which specializes in providing architectural services to clients. Such firms typically hire architects along with support staff who help the architects do their jobs, and they may be part of a larger company which handles many aspects of the design and construction process, from contracting to interior decorating. Small firms may include one or two architects working together, while big companies can hire hundreds or thousands of people, sometimes spread out across multiple offices. Architects are critical members of the building team, because they are responsible for developing the fundamental design, look, and feel of a structure. In many regions, architectural drawings must be filed with permit applications, making the architect's services very necessary for people who want to do work legally. Architects can also be consulted over the course of a job as conditions change and adjustments need to be made to the original design. The foreign firm I am trying to acquire is Acer: Taiwan, computer hardware which was founded in 1976 and in 2010 ranks 2nd for total PCs and notebooks globally. Acer Incorporated is a Taiwan-based multinational computer technology and...
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...International Business Environment – ITB 305 May 29, 2011 1. As a CEO, you are trying to acquire a foreign firm. The size of your firm will double, and it will become the largest in your industry. What does your firm do and what does the foreign firm you are trying to acquire do? Where are the firms based? My firm is an architecture firm. An architecture firm is a company which specializes in providing architectural services to clients. Such firms typically hire architects along with support staff who help the architects do their jobs, and they may be part of a larger company which handles many aspects of the design and construction process, from contracting to interior decorating. Small firms may include one or two architects working together, while big companies can hire hundreds or thousands of people, sometimes spread out across multiple offices. Architects are critical members of the building team, because they are responsible for developing the fundamental design, look, and feel of a structure. In many regions, architectural drawings must be filed with permit applications, making the architect's services very necessary for people who want to do work legally. Architects can also be consulted over the course of a job as conditions change and adjustments need to be made to the original design. The foreign firm I am trying to acquire is Acer: Taiwan, computer hardware which was founded in 1976 and in 2010 ranks 2nd for total PCs and notebooks globally. Acer...
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...Assignment # 2 Working with Federal Reserve’s Publications Laila HP Instructor’s Name: Money and Banking 1. Describe the Federal Reserve’s assessment of the current economic activity and financial markets. Federal Reserve is a banking system of the United States and the purpose of Federal Reserve system is to address banking panics, furnish and elastic currency, to manage money supply in the nation, to maintain the stability of the financial system etc. Currently a sharp fall in exchange rates have boosts interest rates and have depresses the stock prices and created weakness in current economic activities too. In recent years economy of United States has experienced an extended period of economic expansion due to brief and shallow recession which has made the economy of United States less volatile and less recession prone. In the current economic environment of slow growth, high unemployment, and slow credit markets, the Federal Reserve has adopted a stimulatory policy. And the Federal Reserve has given the very low level of interest rates, over the recent period and also has taken additional measures to open up financial markets and stimulate spending. The Federal Reserve have responded forcefully to the significant deterioration in financial market conditions by continuing to ease monetary policy aggressively late last year. Following are the basic operations of Federal Reserve to maintain Financial market stability and current economic activity: ...
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...The Federal Reserve offers to the general public numerous publications available at the website of the Federal Reserve Board,http://www.federalreserve.gov/publications/. The Federal Reserve Board testimonies, press releases, monetary policy reports, the Beige Book, and a variety of other publications offer a detailed assessment of current economic activity, financial markets, and the monetary policy tools used to promote economic activity and preserve price stability. 1. Describe the Federal Reserve’s assessment of the current economic activity and financial markets. 2. Explain the Federal Reserve’s current view about inflation. 3. Describe the monetary policy tools the Federal Reserve uses to stabilize the economy and maintain price stability. 4. Based on the information you researched from Federal Reserve publications, present and justify your own economic outlook for the next 12 to 18 months. Introduction American economy is composed of financial balance of services, Agricultural, manufacturing and banking industry. In the result U.S one of the biggest global economy which comprises of foreign investments and movement of wealth in trade. From past many years the U.S economy is emerged more as service based and industrial base economy than farming based. This result the banking system to be more complex to deal with the government and currency , instituting the regulations and a centralized bank to regulate and from a policies which could limitize...
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...(Prerequisite: FIN 100) Quarter: Spring 2013 Meeting Days/Time: Tuesday’s, 5:45, Prince George’s Campus Instructor: Jason Powers Instructor Phone: 443-599-9525 Academic Office: 301-505-3332 / 301-505-3311 Instructor E-mail: Jason.Powers@strayer.edu Instructor Office Hours/Location: Tuesday’s from 3:30pm – 5:30pm. Online Academic Office Phone Number: 877-540-1733 http://icampus.strayer.edu Technical Support Contact Information: 877-642-2999 Backboard Helpdesk: 866-350-9427 Inclement Weather Policy In the event of inclement weather, consult the Strayer University student website at www.strayer.edu for information on University closings and delays. Be sure to monitor the website for updates as they occur. Additionally, the student is required to contact me at Jason.Powers@strayer.edu. |4/8/2013 |Term Start Date | | | | | | |Week 1 | |Week 7 | | | |4/9/2013 | |5/21/2013 | |Week 2 | |Week 8 | | | |4/16/2013 | |5/28/2013 | |Week 3 | |Week 9 | | | |4/23/2013 | |6/4/2013 | ...
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...issue using techniques to speak to the consumer at a subconscious level. Monetary policy by far is a significant factor in the survival and well being of any nation. It can destroy or exalt any nation through policies that effect how the economy and money interact. Ranging from the Reserve Bank of New Zealand, the Bank of Japan, and the Swiss National Bank to the European Central Bank and the Federal Reserve, these banks were deployed to attend the dire need of keeping monetary value stable; at what ever cost. Though for the best interest, centralized banks have helped and hurt their respective economies in many different ways. “During the nineteenth century and the beginning of the twentieth century, financial panics plagued the nation, leading to bank failures and business bankruptcies that severely disrupted the economy. The failure of the nation's banking system to effectively provide funding to troubled depository institutions contributed significantly to the economy's vulnerability to financial panics” (Fox 1). I will be proving, as a liberal, how failed monetary policies of the Federal Reserve were the ongoing cause of the Great Depression. The onset of the Great Depression can be traced back to August 1929. In the fall of 1930, 15 months had passed since the beginning of the contraction; the economy finally began to appear poised for recovery. The last three contractions has lasted an average of 15 months. However,...
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...The Global Capital Market Learning objectives • Articulate the benefits of the global capital market. • Understand why the global capital market has grown so rapidly over the last quarter century. • Be familiar with the risks associated with the globalization of capital markets. • Appreciate the risks and benefits associated with the Eurocurrency market, the global bond market, and the global equity markets. • Understand how foreign exchange risk impacts upon the cost of capital. This chapter discusses the form and function of the global capital market. The market is attractive because its size lowers the cost of capital for borrowers, and allows investors to diversify their portfolios, thereby reducing their risk. Advances in information technology, and the deregulation of financial services and the relaxation of regulations on cross-border capital flows have contributed to the growth of the global capital market. The chapter then goes on to explore the Eurocurrency market, the global bond market, and the international equities market. The opening case describes how ICBC, China’s largest bank, raised $21 billion in the international equities market. The closing case examines how China Mobile raised capital in international markets through a stock offering and a bond issue. OUTLINE OF CHAPTER 11: THE GLOBAL CAPITAL MARKET Opening Case: Industrial and Commercial Bank of China Introduction ...
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...Expansionary Economic Policy Laura Jackson Eco 203 Nicholas Bergan April 7, 2014 Expansionary Economic Policy Recent economic events have led to a need for the American people to call on their government to utilize their legislative power by implementing expansionary economic policies in an effort to stabilize the fluctuating economy. More specifically, the government has used expansionary fiscal and monetary policies to do so. Such fiscal policies used affected the taxes and government sending both positively and negatively as well as aggregate demand, GDP, and employment, while the monetary policies applied have adjusted the required reserve ratio and discount rates and have resulted in the purchasing and selling of government securities. In a developed country such as ours, fiscal policy is an important tool used to steady the economy. In terms of using this tool as an aid to expansion, necessary adjustments in taxes and government spending are required, resulting in changes in aggregate demand, GDP, and employment. “Fiscal policy is an important tool for managing the economy by having the ability to affect the total amount of output produced,” aggregate demand, and employment (Buena-Bontas & Petre , 2009). How is this done? These changes are made through adjustments in taxes and government spending. In most cases adjustments in tax rates and government spending work concurrently. During a time of high deficit and debt, it is in the government’s best fiscal...
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...Fund, 2001–2003. Director, Harvard Center for International Development, 2003–2004. Professor of Economics and International Affairs, Princeton University, 1992–94; Charles and Marie Robertson Professor of International Affairs, 1995–1999. Professor of Economics, University of California at Berkeley, 1989–1991. Associate Professor of Economics, University of Wisconsin-Madison, 1985–1988. Economist, International Finance Division, Board of Governors of the Federal Reserve System, 1980–1983; Section Chief, Trade and Financial Studies Section, 1984. Economist, Research Department, International Monetary Fund, Oct. 1982 – Sept. 1983. VISITING POSITIONS BP-LSE Visiting Centennial Professor, London School of Economics, 1998–99 academic year. Morgenstern Visiting Professor of Economics, New York University, spring semester 1995. Visiting Scholar, Bank of Japan, Institute for Monetary and Economic Studies, summer 1991. Visiting Scholar, Research Department, World Bank, summer 1989. Visiting Scholar, Board of Governors of the Federal Reserve System, International Finance Division, 1988, 1994....
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...NBER WORKING PAPER SERIES THE EFFECTS OF QUANTITATIVE EASING ON INTEREST RATES: CHANNELS AND IMPLICATIONS FOR POLICY Arvind Krishnamurthy Annette Vissing-Jorgensen Working Paper 17555 http://www.nber.org/papers/w17555 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 October 2011 We thank Jack Bao, Olivier Blanchard, Greg Duffee, Charlie Evans, Ester Faia, Simon Gilchrist, Robin Greenwood, Monika Piazzesi, David Romer, Thomas Philippon, Tsutomu Watanabe, Justin Wolfers, and participants at seminars and conferences at Brookings, Chicago Fed, Board of Governors of the Federal Reserve, ECB, San Francisco Fed, Princeton University, Northwestern University, CEMFI, University of Pennsylvania (Wharton), Society for Economic Dynamics, NBER Summer Institute, the NAPA Conference on Financial Markets Research, and the European Finance Association for their suggestions. We thank Kevin Crotty and Juan Mendez for research assistance. This paper was prepared for the Brookings Papers on Economic Activity Fall 2011 issue. We have received an honorarium for the presentation of the paper at Brookings. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. At least one co-author has disclosed a financial relationship of potential relevance for this research. Further information is available online at http://www.nber.org/papers/w17555.ack NBER working papers...
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...CONGRESS OF THE UNITED STATES CONGRESSIONAL BUDGET OFFICE CBO The Budget and Economic Outlook: Fiscal Years 2013 to 2023 Percentage of GDP 120 100 80 60 40 20 0 1940 1945 Actual Projected 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 Federal Debt Held by the Public Trillions of 2005 dollars 20 18 16 14 12 10 0 2000 2004 2008 Potential GDP GDP Actual Projected Percent 12 10 8 6 4 2 0 2000 Actual Projected 2012 2016 2020 2024 2004 2008 2012 2016 2020 2024 GDP and Potential GDP Unemployment Rate FEBRUARY 2013 Notes Numbers in the text and tables may not add up to totals because of rounding. Unless otherwise indicated, years referred to in describing the budget outlook are federal fiscal years (which run from October 1 to September 30) and years referred to in describing the economic outlook are calendar years. The figures in Chapter 2 have white vertical bars that indicate the duration of recessions. (A recession extends from the peak of a business cycle to its trough.) The economic forecast was completed in mid-January 2013, and the estimates of 2012 values shown in tables and figures in Chapter 2 and Appendix B are based on information available at that time. Supplemental data for this analysis and the historical budget data that are usually included in this report are available on CBO’s Web site (www.cbo.gov). CBO Pub. No. 4649 Contents Summary...
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...ISSN No-2230-7850 Vol.1,Issue.IX/Sept;11pp.1-4 Research Paper Technological Developments in Indian Banking Sector Dr. B.S. Sawant, Director, K.B.P. Institute of Management Studies and Research, Satara, Research Guide Abstract: Banking sector plays a significant role in development of Indian economy. So banks need to optionally leverage technology to increase penetration, improve their productivity and efficiency, deliver cost-effective products and services, provide faster, efficient and convenient customer service and thereby, contribute to the overall growth and development of the country. Technology enables increased penetration of the banking system, increases cost effectiveness and makes small value transactions viable. Besides making banking products and services affordable and accessible, its simultaneously ensures viability and profitability of providers. Technology allows transactions to take place faster and offers unparallel convenience through various delivery channels. Technology enhances choices, creates new markets, and improves productivity and efficiency. Effective use of technology has a multiplier effect on growth and development. In the area of payment systems, there have been significant advancements of technology on the customer transactions. India is one of the country that has effectively tackled huge volumes of paper instruments in cost effective manner. The Magnetic Ink Character Recognition (MICR) cheque clearing System, cheque transaction...
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...Monetary Policy and the Federal Reserve: Current Policy and Conditions Marc Labonte Specialist in Macroeconomic Policy February 9, 2015 Congressional Research Service 7-5700 www.crs.gov RL30354 Monetary Policy and the Federal Reserve: Current Policy and Conditions Summary The Federal Reserve (the Fed) defines monetary policy as its actions to influence the availability and cost of money and credit. Because the expectations of market participants play an important role in determining prices and economic growth, monetary policy can also be defined to include the directives, policies, statements, and actions of the Fed that influence future perceptions. Traditionally, the Fed has implemented monetary policy primarily through open market operations involving the purchase and sale of U.S. Treasury securities. The Fed traditionally conducts open market operations by setting a target for the federal funds rate, the rate at which banks borrow and lend reserves on an overnight basis. Beginning in September 2007, in a series of 10 moves, the federal funds target was reduced from 5.25% to a range of 0% to 0.25% on December 16, 2008, where it has remained since. With the federal funds target at this zero lower bound, the Fed attempted to provide additional stimulus through unconventional policies. It provided forward guidance on its expectations for future rates, announcing that it “anticipates that, even after employment and inflation are near mandate-consistent levels, economic...
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...NBER WORKING PAPER SERIES THE FINANCIAL CRISIS AND THE POLICY RESPONSES: AN EMPIRICAL ANALYSIS OF WHAT WENT WRONG John B. Taylor Working Paper 14631 http://www.nber.org/papers/w14631 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 January 2009 I am grateful to John Cogan, Angelo Melino, John Murray, George Shultz and participants in the Global Markets Working Group for helpful comments and suggestions. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peerreviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications. © 2009 by John B. Taylor. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. The Financial Crisis and the Policy Responses: An Empirical Analysis of What Went Wrong John B. Taylor NBER Working Paper No. 14631 January 2009 JEL No. E0,G01 ABSTRACT This paper is an empirical investigation of the role of government actions and interventions in the financial crisis that flared up in August 2007. It integrates and summarizes several ongoing empirical research projects with the aim of learning from past policy. The evidence is presented in a series of charts which are...
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