APE 2
Economics 1213 with Huston at Oklahoma Christian University of Science & Arts
About this deck
By: lena baskin
Created: 2011-05-15
Size: 40 flashcards
Views: 12
Created: 2011-05-15
Size: 40 flashcards
Views: 12
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similarities in fiscal and monetary
~both effect the power of the dollar in the world and super-market
~both affect your base purchasing power
~voters have little influence over either, even though we have more influence over one than the other
~both affect your base purchasing power
~voters have little influence over either, even though we have more influence over one than the other
fiscal
~controlled by the government, President and congress
~it's primary tools are taxing and gov. spending
~it's primary tools are taxing and gov. spending
monetary
~controlled by the federal reserve board and federal reserve banks
~it is primarily concerned with he flow of money
~it is primarily concerned with he flow of money
influences of president on fiscal policy
~submit a national budget to congress
this recommends how the federal gov. should tax, spend, and borrow fo the given year
this recommends how the federal gov. should tax, spend, and borrow fo the given year
executive office
made up of diff groups and advisors to aid the pres. in setting policy
Office of Management and Budget
~assists the Pres. in overseeing the preparation of the federal budget
~supervises its administration in executive branch agencies
~evaluates the effectiveness of agency programs, policies, and procedures
~sets funding priorities
~supervises its administration in executive branch agencies
~evaluates the effectiveness of agency programs, policies, and procedures
~sets funding priorities
council of economic advisors
~3 members appointed by pres with consent of senate
DUTIES
~assist pres in preparation of economic report
~gather info concerning economic development and current prospective
~develop national economic policy
DUTIES
~assist pres in preparation of economic report
~gather info concerning economic development and current prospective
~develop national economic policy
department of treasury
~collects taxes, borrows money, pays the bills, and prints the money
~ is the governor for the IMF, IRD, Inter-American development bank, asian dev bank and the african development bank
~normally a very powerful position in setting economic policy
chief accountant for depart treasury
tim Gaithner
power of congress in fiscal policy
~budget and impoundment control act of 1974
created congressional budget office to counter CEA
~congress alone has power to spend money (increase emergency funding for projects beyond the budget)
created congressional budget office to counter CEA
~congress alone has power to spend money (increase emergency funding for projects beyond the budget)
what is monetary policy over?
what money can be borrowed, interest rates, and repayment requirements
role of federal reserve
central bank of US
~manages nats supply of money and credit and operate at the cent of the nat financ system
~monit currency transact elect. pay and check clear
~serves as banker for fed. gov
~supervises and reg. share of nat banking and financial syst.
~manages nats supply of money and credit and operate at the cent of the nat financ system
~monit currency transact elect. pay and check clear
~serves as banker for fed. gov
~supervises and reg. share of nat banking and financial syst.
3 parts of fed reserves
board of governers 7 members
federal reserve banks
federal open market committee(made up of board of gov. and banks)
federal reserve banks
federal open market committee(made up of board of gov. and banks)
structure of fed. reserve reflects what
hostility of the american public to centeraized authorities
fear that central banking would be in the pocket of wall street
fear that central banking would be in the pocket of wall street
federal reserve board members and selection process
~7 members who are appointed by pres. and confirmed by senate and serve 14 yrs. every 2 yrs one is up for replacement
~chairman and vice chairman apppoint by pres and serve 4 yr term must be member of FRB first
~chairman reports 2 year 2 congress
~chairman and vice chairman apppoint by pres and serve 4 yr term must be member of FRB first
~chairman reports 2 year 2 congress
who is the federal reserve board chair?
Ben Bernanki
who does the federal open market committe consist of?
7 member of FRB
pres of FRBNY
pres of 4 other Federal Reserve Banks
pres of FRBNY
pres of 4 other Federal Reserve Banks
what happened in 1994 with FOMC
they must issue a public announcement about the outcome of meetings
what does FOMC do
~meets 8 time a year and can change things then
~issues directives to the trading desk at FRBNY
~issues directives to the trading desk at FRBNY
who conducts the open market operations?
trading desk a t FRBNY
what does fed reserve do with federal funds
rate on overnight loans between banks
~buys and sells US treasuries
more money buy back bonds
less money sell bonds
~buys and sells US treasuries
more money buy back bonds
less money sell bonds
case for fed being independent
~likely has longer run objectives, pliticians don't
~avoids political business cycle
~less likely deficits will be inflationary
~avoids political business cycle
~less likely deficits will be inflationary
case against fed being independent
~fed may not be accountable
~hinders coordination of monetary and fiscal policy
~some argue that the fed has often preformed badly
~hinders coordination of monetary and fiscal policy
~some argue that the fed has often preformed badly
factors makein fed independent
members of board have long term
fed is financially independent. This is most impt
fed is financially independent. This is most impt
factors making fed dependent
congress can amend fed legislation
pres. appoints chairmen and board members and can influence legislation
pres. appoints chairmen and board members and can influence legislation
instrument independence
ability to set monetary policy instruments
goal independence
ability to set monetary policy goal
debit
is the total amount of money owed by the government
deficit
the yearly amount when expenses exceeds reveue
what is the current national debt
14 trillion
where is most of our money owed to
ourselves US
what is the second largest place our debt is
foreign and international countries
what country is most our debt owed to
china
where does our oil come from
1 canada
2mexico
3 saudi arabia
17 libya
2mexico
3 saudi arabia
17 libya
what causes deficit spending
~poor planning by gov
~natural disasters
~war
~pork barrel politics
~corruption in the gov. (cleptocracy)
~natural disasters
~war
~pork barrel politics
~corruption in the gov. (cleptocracy)
what is harm in national debt
when debt is more than GDP
globalization
increase amount of world economic trade
Causes easier access
Causes easier access
what has the biggest impact on the world economy
foreign direct investment flows
economic argument for intervention
~infant industry protection
~strategic trade policy
~strategic trade policy
political argument for intervention
national security
individual industries and jobs protected
retaliation
consumer protection
furthering foreign policy objectives
individual industries and jobs protected
retaliation
consumer protection
furthering foreign policy objectives
About this deck
By: lena baskin
Created: 2011-05-15
Size: 40 flashcards
Views: 12
Created: 2011-05-15
Size: 40 flashcards
Views: 12
About StudyBlue
STUDYBLUE makes things that make you better at school.
Things like online flashcards with photos and audio.
Things like personalized quizzes and friendly reminders about when (and what) to study next.
Think of it as a digital backpack™: access to all of your study materials online and on your phone.
STUDYBLUE exists to make studying efficient and effective for every student, for free. Join us.
“Simply amazing. The flash cards are smooth, there are many different types of studying tools, and there is a great search engine. I praise you on the awesomeness.”
Dennis
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