Sample Essay on:
The Role Of The Federal Reserve In Monetary Policies

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Essay / Research Paper Abstract

A 4 page paper that begins by explaining the goal of monetary policies and who administers the nation's monetary policies – in America, it is the U.S. Federal Reserve Bank system. Monetary policies are a nation's primary tool to influence the economy. The writer reports the goals and the duties of the U.S. Federal Reserve Bank. Some of the many strategies the Federal Research Bank uses to perform its duties and accomplish its goals are discussed. The days following 9/11 are used as an example to demonstrate how the Federal Reserve has a very strong influence on the economy and on businesses. Bibliography lists 6 sources.

Page Count:

4 pages (~225 words per page)

File: MM12_PGfdrsmnt.rtf

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Unformatted sample text from the term paper:

policies are historically administered by a central bank that is appointed by the nations government (Financial Pipeline, 2002). In America, the central bank is the Federal Reserve Bank of the United States (Financial Pipeline, 2002). Monetary policy is the primary tool used by a government to influence the national economy (Financial Pipeline, 2002). The government controls both the supply and the availability of money within the country (Financial Pipeline, 2002). It is important for any national government to take the steps necessary to influence economic activity so that it is commensurate with the political objectives of that government (Financial Pipeline, 2002). The United States Federal Reserve bank system has specific duties, which are to: 1.) conduct the nations monetary policy; 2.) supervise and regulate banking institutions and protect the credit rights of consumers; 3.) maintain the stability of the financial system; and 4.) to provide certain financial services to the U.S. government, the public, financial institutions, and foreign official institutions (Board of Governors of the Federal Reserve System, 2001). The goals and objectives the Federal Reserve Bank are "to achieve sustainable growth, to assure price stability and to maintain the integrity of the nations financial system" (Smith, 2001, p. ITEM01276019). To achieve these goals and to perform its duties, the Federal Reserve Bank has a number of specific strategies it uses, such as discount rates or discount windows, the reserve department and the open market operations (Smith, 2001). It is through these tools that the Federal Reserve Bank has a direct influence on the design and implementation of monetary policies. And, it is also through the use of these strategies that the Federal Reserve Bank influences the businesses in the nation. The Federal Reserve Bank is essential to the economy of the United States. It "monopolizes the issuance ...

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