Reserve Bank College Essays Samples For Students

Introduction

Monetary policy is the endeavor by the federal or state government to control the amount of money circulating within an economy. These control measures are undertaken to cub the instances of inflations or to control the interest rates to sustainable levels. Monetary policies can either be expansionary or contractionary. Expansionary monetary policies are meant to expand the supply of money to the economy thereby boosting the economic activities (Afonso, 2012). Expansionary monetary policies also lead to a reduction in average interest rates. Contractionary monetary policies, on the other hand, are macro-economic tools used by the federal or the state ...

Introduction

This is the central bank of Australia and its head office is in Sydney. This bank was established at the end of 1959, under the Reserve Bank act of 1959, but became effective in 1960. It assumed the central banking functions, which previously were a responsibility of the Commonwealth Bank of Australia. The bank’s main responsibility is setting the monetary policy of the country, besides other responsibilities. The bank is owned by the government of Australia (rba.gov.au).

Body

The bank has two boards; the Reserve Bank Board (deals with the bank’s monetary and banking policy), and the Payments System ...

Biography for Janet Yellen

Janet Yellen was born on August 14, 1946, in Brooklyn, New York. Her mother was a teacher and the father a doctor. She attended Fort Hamilton High school. She excelled in many subjects and became the editor of the institution's newspaper and graduated as a valedictorian in 1963. She then attended Brown University and obtained a bachelor’s degree in economics in 1967. She proceeded to Yale University and received a Ph.D. in 1971. She married George Akerlof, a professor at the University of California at Berkeley and an economic noble prize winner in 1978. Yellen has one adult ...

Abstract

The current paper explores the main differences of the Great Recession in 2007-2009 from other economic collapses in the history if the United States. Section I discusses the general features of a recession and describes the main responsibilities of the National Bureau of Economic Research. Section II is devoted to the comparison of the Great Recession with the recession of 1980s. The section is divided into four subsections. Subsection A presents the basic comparison of recessions in the U.S. history and explains the choice of the 1980s period for the further comparison. Subsection B explores differences in unemployment in ...

The question of minimum wage introduction for low-skilled workers offers conflicting research findings. Some theorists suggest that the introduction of minimum pay for low-skilled labor may affect the whole employment. However, the general model of competitive market for labor assumes that the introduction of minimum wage will cause job loss among the low-skilled employees. This report is dedicated to the economic analysis of this model.

What Economic Theory Predicts Will Happen

The simplest approach includes the analysis of one separate labor type. In such market, the minimum wage that overshoots the competitive equilibrium in the market causes harm to employment from two standpoints. First of ...

Introduction

The Tulip Mania that took place between 1636 and 1637 is one of the earliest recorded financial bubbles (Veen, 2012). While there is no universally accepted definition of a financial bubble, the term financial bubble is used to refer to a situation where an asset price exceeds the asset intrinsic value, or the value that could be earned by holding the asset to maturity for an extended period of time (The Federal Reserve Bank of Chicago, 2012). The Tulip Mania fits the description of a financial bubble because at its height, the price of some tulip bulbs exceeded the ...

Prior to the Great Depression policy makers in the United States generally tended to accept that business cycles happened and in accord with Adam Smith's "invisible hand," tended to be self-correcting. The stock market crash of 1929, and the more general problem of massive unemployment forced a reconsideration. Smiley (2008) and Bernstein (2016) both point out that the human face of the Depression left no choice but for some government intervention. Jahan and Papageorgiou (2014), discussing Keynesian Economics put it plainly: “The central tenet of this school of thought is that government intervention can stabilize the economy.” The centerpiece ...

Article Review

The US economy is well known for the wide range of detailed data that is available through various organizations like the Fed, the Bureau of Labor Statistics, the Bureau of Economic Affairs and many others. The world’s largest economy has a high reputation on the quality and reliability of the data that it provides. Though the data provided by the government organizations have a high degree of accuracy the data is not a real time one. This is because the organizations need updated statistics on the various macroeconomic variables. For this reason there is a time lag in ...

The value added tax (VAT) is consumption tax levied on goods and services in the country while revenue refers to taxes on income from labor or capital. Consumption taxes are not regressive and closely relates to sales tax despite the two being fundamentally different. The shift from income tax to a VAT would raise the nation’s savings.
VAT tends to discourage consumption leading to more savings. Moreover, VAT does not decrease the returns to savings. It follows that it does not affect choices between future and current consumption by changing their relative prices (Congressional Budget Office, 1992 p. ...

The actual reserve is the amount of funds or cash that a bank has on deposit with the main reserve bank. Most of the cases it is the sum of money that a bank has on deposit with the Federal Reserve Bank and those in the branches across an area of jurisdiction (Macesich 28). In economic terms, branches of a Federal Bank are referred to as commercial districts. Furthermore, actual cash includes up to a bank's vault cash. The actual reserve can be calculated by summing up the entire bank's reserve deposit at the Federal Bank with its vault ...

Fed and the Economy

For an economy that is in recession, the FED does not directly affect the output and the economy. Rather, it does so in an indirect manner through the lowering of the federal funds rate, which, in most cases is short-term in nature. Open market operations are employed in this case. These are usually meant for the bank reserves, otherwise referred to as the federal funds market. In such a case, it is a requirement that banks have a certain amount or more set aside for reserves (Maxwell, 2003, p.6).

The federal funds market

The amount of reserves a bank wants to hold is bound to vary with ...