Federal Reserve: An Analysis Of Monetary Policy
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Monetary Policy refers to what the Federal Reserve does to influence the amount of money available to consumers and the interest rate at which people can borrow money.
By modifying interest rates, buying or selling government bonds, or changing bank reserves the Federal Reserve is able to influence the market through the Monetary Policy by either expanding or contracting the money supply.
Reasons that the Federal Reserve would want to influence the market include lowering unemployment, increasing consumer spending, or controlling inflation.
Key Factors That Influence the Quantity of Money That People Desire to Hold:
There are three key factors that influence the amount
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