1. . 2. 3. 4. 5. Explain how monetary policy can function to achieve economic stability. What is the role of interest rates? Explain the process of how the Fed changes interest rates and how those changes encourage an appropriate increase or decrease in spending in the economy? Discuss the regulatory role of a central bank. What is its purpose? Summarize the role of monetary policy in affecting short-term interest rates. If interest rates are different in two countries that are both on an international gold standard, will likely happen? How transparent should the central bank be? Should the central bank also regulate and/or supervise banks? Why was the idea of a permanent tradeoff between unemployment and inflation so important in contributing to inflationary conditions? How did that lead to a concept of "fine-tuning"? What were the strengths of the lender-of-last-resort programs? Why they were not continued la permanent basis? How can improved communication make monetary policy more effective? Compare the length of the recovery to the length of the recession. 6. 7. 8. 9. 10