FEDERAL RESERVE BANK OF DALLAS Issue 2 March /April 2003 Southwest Economy . . . . . . . . . . . . . . . . . . . . . What Wages and Property Values Say About Texas Two principal factors determine which cities experience the most rapid economic growth: business investment and labor growth. Business investment is high in cities where productivity is high relative to the cost of production. Workers are most attracted to cities where the amenities and wages are high relative to the cost of
Words: 2628 - Pages: 11
prices at an all time high. Consumers are buying less because they are spending more money just to get to work each week. Vacation spending and shopping sprees are not an option to most Americans. The Federal Reserve also serves a role in the weakening of the U.S. dollar. The Federal Reserve is lowering interest rates making the dollar worth less. This is an attempt to try to avoid another bank scare in which many Americans withdraw their money out of the banks at the same time. Finally, subprime
Words: 950 - Pages: 4
international reserve currency, there could be conflicts of interest between short-term domestic and long-term international economic objectives. This dilemma was first identified by Belgian-American economist Robert Triffin in the 1960s, who pointed out that the country whose currency foreign nations wish to hold (the global reserve currency) must be willing to supply the world with an extra supply of its currency to fulfill world demand for this 'reserve' currency (foreign exchange reserves) and thus
Words: 2396 - Pages: 10
Labor market = w/p and L -suply curve: how many people will want to work at various real wage rates slopes upwards: as the wage rate increases, more and more individuals decide they are better off working than not working... rise in the wage rate increases the number of people in the economy who want to work -demand curve: how many workers firms will want to hire at various real wage rates downward sloping: as the wage rate increases, each firm in the economy will find to maximize profit it should
Words: 1301 - Pages: 6
Introduction The article I chose argues about discrepancy between tight and monetary policy of United States’ Federal Reserve Bank compared to that of other countries. This article is related to Macroeconomics and concepts are consistent with the course materials. It talks about unemployment, inflation and monetary policy. I found out strengths and weaknesses from the monetary policy that occurred in this article. Different countries concern about different problems within their society whether
Words: 1168 - Pages: 5
DEPOSITORY INSTITUTION RESERVES * Any time there is an increase in reserves at the Fed, there is an increase in money supply. * The greater the uncertainty in the economy, the greater is bank management’s desire to hold excess reserves. * The higher the interest rate the Fed pays on reserves, the more likely the bank is to increase its holding excess reserves at the Fed. * Historically, the Fed has not paid interest on reserves. * Reserves can be transferred from one institution
Words: 1651 - Pages: 7
Different roles of banks, government, central banks, in controlling the business cycle. Bank is a financial intermediary that uses liquid assets in the form of bank deposits to finance the illiquid investments of borrowers. Banks can create liquidity because it isn’t necessary for a bank to keep all of the funds deposited with it in the form of highly liquid assets. Except in the case of a bank run—which we’ll get to shortly—all of a bank’s depositors won’t want to withdraw their funds at the
Words: 2241 - Pages: 9
Chapter One notes. 6 parts of the financial system- play a fundamental role in our economy. 1) Money- use it to pay for our purchases and to store our wealth 2) Financial Instruments- to transfer resources from savers to investors and to transfer risk to those who are best equipped to bear it. EXAMPLES: stocks, mortgages, insurance policies 3) Financial Markets- allows us to buy and sell financial instruments quickly and cheaply EXAMPLE: New York stock exchange 4) Financial Institutions-
Words: 302 - Pages: 2
HAVE A SIMILAR RISK PROFILE? IF NOT DESCRIBE THE TYPE OF RISK FACING EACH MAIN TYPE OF HEDGE FUND 3 More Risky 3 Moderate Risk 3 Risk-Avoidance 3 WHAT FINANCIAL RISKS LED TO FAILURE OF LONG-TERM CAPITAL MANAGEMENT (LTCM)? 4 WHY DID THE FEDERAL RESERVE OPT NOT TO SUPPORT LONG-TERM CAPITAL MANAGEMENT FINANCIALLY? 5 WHAT WERE THE ARGUMENTS IN FAVOUR AND AGAINST THE RESCUE OF LONG-TERM CAPITAL MANAGEMENT? 6 Arguments for the rescue of LTCM: 6 Arguments against the rescue of LTCM: 6 WHAT
Words: 2410 - Pages: 10
Christoper The U.S. Current Account Deficit On-going political battles over U.S. government budgets, the Federal Reserve Bank's intimations that it might raise interest rates, even as sovereign-debtcrises in Europe remained unresolved, the Chinese and some other developing-country economiesseemed precarious are the worldwide economy overview in 2013. The role of the U.S. currentaccount deficit had receded into the background. In fact, the currentaccount deficit had declinedfrom an average of almost
Words: 964 - Pages: 4
