Questions on articles related to inflation expectations

Read the 2 articles Fed Official Expects Growth and are Inflation Expectations Rising from the Ashes? The cites are: http://pittsburghlive.com/xtribunereview/business/s 385893.html http://research.stlouisfed.org/publications/mt/20051101/cover.pdf Questions: 1) What exactly is the Federal Reserve? 2) Do the effects of natural disasters, such as hurricanes, cause inflation or deflation? 3) Who is in charge of the Fed? 4) Do voters have a say in the implementation of monetary policy? 5) How is inflation measured? 7) Why is inflation so widely feared? 8) How might a high school student's experience with inflation differ from an employed urban adult?

Economic theory question

What are the most important concepts you can learn in Economic Theory classes? How can you apply them to your life? What difference can these concepts make in your everyday life?

The International Monetary Fund

Your cousin's latest interest is The International Monetary Fund, about which you are now chatting online. The IMF was established by the United Nations in 1944 to provide loans to countries in financial distress at a relatively low interest rate. Nations having balance-of-payments problems can borrow from the IMF for short time periods and such loans include economic and financial stipulations on the debtor nation. Typically, such stipulations require that the debtor nation follow an austerity program that limits government spending, domestic consumption, and imports. Your cousin wants to know, what do you think about the goal of the IMF’s aid to distressed countries? What has been t... click for more

Federal Funds / Discount Rate

If the required reserve ratio is 10%, banks keep 2% excess reserves, and the public keeps a 10% cash to deposit ratio, what is the money multiplier? a) 10 b) 20 c) 5 d) 0.22 e) none of the above The increased use of credit/debit cards for transactions will cause the money multiplier to a) increase b) decrease c) remain the same d) credit/debit cards and the money multiplier are unrelated e) none of the above The federal funds rate can never be ______ the discount rate. a) higher than b) lower than c) equal to d) the federal funds rate and the discount rate are unrelated e) none of the above The interest rate that one commercial bank charges an... click for more

Forex / Federal Funds Rate / Monetary Policy

Briefly state the advantages and disadvantages of foreign exchange rate targeting. Briefly state the advantages and disadvantages for each tool the Fed can use to manipulate the federal funds rate. Briefly state the advantages and disadvantages for each target the Fed can use to anchor monetary policy, i.e. inflation target, money target, or implicit anchor. Briefly describe the criteria for choosing a monetary policy instrument.