Essays on Gali

Response

Response 5. Explain the effectiveness of monetary policy. Monetary policy is an item that is used by the state or author in an attempt to control instances of inflation and ensure that there is price stability. The central bank has the mandate to monitor the growth and the size of the money supplied. Various strategies are used to control and maintain the monetary policy. For example, selling or buying the government bonds, adjusting interest rates and managing the bank reserves (Galí & Gertler, 2009). Monetary policy is effective. This is based on the expansionary policy. If an increase in the ...

There is a need for any country to have its central Bank. Unlike most countries, which use the central Bank system, the U.S has a federal Banking system which is also known as the fed. The headquarters of the federal Bank is in the capital Washington D.C and also has other twelve district banks in different locations. Federal Reserve Act established the fed in 1913 and was formed to solve problems of money in the country (Gali, 2009). The decisions made by the federal Bank directly affect the safety and soundness of the country’s financial system. The federal Bank ...

Introduction

Monetary policy refers to those policy measures targeted at achieving desired economic outcomes through money market operations. Authorities in charge of money market control use different policy instruments to control the money supply in order to achieve suitable market prices as well as stability in the national economy. The key instruments at disposal for those authorities include open market operations, minimum reserve ratio as well as bank rate. However, the policy instruments application does not have a direct impact on market prices and demand but follows a transition mechanism from the authorities’ actions to the desired economic results. In that respect, ...

Education has become a key tool to success in many societies around the globe. Education has become highly valued because of the form of capitalist world we live in. Different nations around the world are working towards having a growing GDP as a symbol of growing economy. Through education, people gain knowledge and skills that are treasured in the job market. This indicates that people who are uneducated tend to be segregated in the job market because they do not possess the required skills thereby, making education an important factor in the society. It is also crucial to note that one’s ...