monetary policy

ECO201 – Macroeconomics

Unit 6 Assignment: Monetary Policy

Due: Sunday by 11:59 pm at the end of Unit 6.

Monetary Policy: What works?

Monetary policy by the US Federal Reserve is important for the US economy. However,

economists disagree about several aspects of Federal Reserve decision-making powers

including the composition of the Federal Reserve committees, Federal Reserve goals, and the

actual impact of Federal Reserve policy on the economy. Address the following questions for

this week’s assignment:

 Provide a brief (one paragraph) overview of this week’s material.

 Should the Federal Reserve Board focus exclusively on the problem of inflation?

 What other goals are appropriate for Federal Reserve policy?

 What is the appropriate goal for the inflation rate?

 How should the Federal Reserve Board use its policy to achieve its goals?

 How effective is the Federal Reserve monetary policy in achieving its goals?

 Is the composition of the decision-making bodies of the Federal Reserve appropriate for a democracy?

For information from the Federal Reserve Board itself, go to the Board of Governors of the

Federal Reserve System at: http://www.federalreserve.gov/

The Board of Governors site contains the Fed's Beige Book, Congressional testimony and

speeches of Federal Reserve Board members, Federal Open Market Committee (FOMC)

information, press releases, current interest rate information, and general information about the

Federal Reserve System. A PDF-format version of The Federal Reserve System: Purposes and

Functions, a thorough overview of the Federal Reserve System, is available by chapter or as a

single document.

In addition, the site contains a summary of Federal Reserve regulations. Particularly useful is

the publication, “Purposes and Functions of the Federal Reserve System” at:

http://www.federalreserve.gov/pf/pf.htm

And, “Monetary Policy: An Introduction”

http://www.frbsf.org/publications/federalreserve/monetary/index.html

Criticism of the Federal Reserve Board comes from both conservatives and liberals sides.

For a liberal viewpoint see the Financial Markets Center at:

http://www.communityinvestmentnetwork.org/nc/single-news-item-states/article/financial-

markets-center/?tx_ttnews%5BbackPid%5D=326

For a conservative viewpoint, see the Shadow Open Market Committee at:

http://shadowfed.org/

Your final product will be a paper that:

 Addresses each of the questions above in total.

 Is APA fortatted.

 The body is to be 2 pages minimum.

The requirements for your assignment are:

1. Answer each question fully

2. Define the overall subject of each question.

3. Cite at least four (4) resources from this week’s materials

Students: Be sure to read the criteria and review the grading rubric on the next page, by

which your paper/project will be evaluated, before you write, and again after you write.

Evaluation Rubric for Unit 6 Assignment

CRITERIA Deficient Proficient Exemplary Points

Earned

Overview of the

Topic 0-13 Points

Does not provide an

adequate overview

or is missing.

14-22 Points

Overview is

presented, though

may not be clear or

complete.

23-30 Points Overview is clearly

presented including

all criteria outlined

above.

Complete

Answers 0-11 Points Questions

unanswered and/or

poorly answered.

12-23 Points All questions

answered with 1-2

sentence inputs.

24-45 Points

All questions

answered with depth

and clarity.

References to

Course Materials 0-5 Points Less than 4

references, no

assimilation to the

questions.

6-10 Points 4 references,

minimal

assimilation to the

questions.

11-15 Points 5 or more references

and assimilations

show depth and

clarity.

APA Format 0-1 Point Format has errors

that impede

professional

presentation; and/or

APA not followed,

reference page

missing.

2-3 Points APA format and

reference page has

few errors that do

not impede

professional

presentation.

4-5 Points APA format and

reference page is

clear, professional,

and error free.

Writing Quality 0-1 Point More than 7 writing

errors, to include

spelling and

punctuation.

2-3 Points More than 4 writing

errors, to include

spelling and

punctuation.

4-5 Points No writing errors.

Total 100