FINA60052: session 6 : Monetary policy and Financial crises, panics, and macroeconomic policy

Description

Summarize the structure and duties of the Fed.
List the three tools of monetary policy and explain how they work.
Define the Federal funds rate and discuss how the Fed uses it as an intermediate target.
State the Taylor Rule and explain its relevance to monetary policy.
Explain how monetary policy works in the AS/AD model.
List five problems often encountered in condicting monetary policy.
Explain why economists worry more about the collapse of the financial sector than the collapse of other sectors.
List the three stages of a financial crisis.
Discuss how herding and leverage can lead to a bubble.
Distinguish between nonsystemic and systemic risk.
Describe the three stages by which an economy gets out of a financial crisis.
Explain the importance of the moral hazard problem, the law of diminishing control, and the bad precedent problem.