If you were asked to design a new central bank, what two institutional design features of (a) the Federal Reserve System and (b) the ECB would you adopt? Explain your choices.
Answer to relevant QuestionsGo to the Federal Reserve Board's Web site and locate the FOMC’s most recent statement. What did the committee members say at their last meeting regarding the Federal funds target and the two goals of price stability and ...Why do you think the statement released after each Federal Open Market Committee meeting retains the same basic structure? Suppose a major bank needs to borrow $20 billion overnight that it cannot obtain from private creditors. The Fed is willing to make a discount loan of $20 billion provided that it will not alter interbank lending rates. How ...In which of the following cases will the size of the central bank’s balance sheet change? a. The Federal Reserve conducts an open market purchase of $100 million U.S. Treasury securities.b. A commercial bank borrows $100 ...Do you think the Federal Reserve successfully carried out its role as lender of last resort in the wake of the terrorist attacks on September 11, 2001? Why or why not?
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