Discussion:
1. Explain in details Monetary Policy. What is the difference between expansionary and contractionary monetary policies? Give specific examples of both that were and/or currently implemented by the Federal Reserve.
2. Explain any one of the following rule, model, or curve.
a. Taylor rule
b. yield curve
c. inverted yield curve
d. monetary regime
1. What is your understanding of a bank run? Describe the role of the Fed as the lender of the last resort.
2. In the words of ex-Fed Chairman Bernanke, he said that the recent financial crisis was a failure of economic engineering and management. Do you agree or disagree? Why? Please explain.
1.What is your understanding of the fractional reserve system? What are some of its strengths and weaknesses? How do you differentiate that with the full reserve banking system?
2. Explain the concepts of M01, M1, and M2. Please give some examples. Is there an M3 and so on?