Chapter CentralBanking and the Conduct of Monetary policy
Chapter 7 Central Banking and the Conduct of Monetary Policy
1. Brief Introduction on CentralBank Four Players in Money Supply Process Structure of central Banks and the Federal Reserve System The fed’ s Balance sheet
1. Brief Introduction on Central Bank • Four Players in Money Supply Process • Structure of Central Banks and the Federal Reserve System • The Fed’s Balance Sheet
1.1 Four Players in Money Supply Process The central bank-the governmentagency that oversees the banking systermyane responsible for the conduct of monetary policy Banks( depository institutions)the financial intermediaries that accept deposits from individuals and institutions and make loans Depositorsindividuals and institutions that hold deposits in banks Borrowers from banks--individuals and institutions that borrow from the depository institutions and institutions that issue bonds that are purchased by the depository institutions
1.1 Four Players in Money Supply Process • The central bank—the government agency that oversees the banking system and is responsible for the conduct of monetary policy • Banks (depository institutions)—the financial intermediaries that accept deposits from individuals and institutions and make loans • Depositors—individuals and institutions that hold deposits in banks • Borrowers from banks—individuals and institutions that borrow from the depository institutions and institutions that issue bonds that are purchased by the depository institutions
1.2 Structure of central Banks andthe Federal Reserve System Origins of the Federal Reserve System Structure of Federal Reserve System Structure of other central banks in the world
1.2 Structure of Central Banks and the Federal Reserve System • Origins of the Federal Reserve System • Structure of Federal Reserve System • Structure of other central banks in the world
1 3 The feds Balance sheet Assets Liabilities Government securities Currency in circulation Discount loans Reserves(bank deposits Gold and sDr U.S Treasury deposits certificate accounts Foreign and other Coin deposits Cash items in process Deferred-availability of collection cash items Others Others and capital accounts
1.3 The Fed’s Balance Sheet Assets Liabilities Government securities Discount loans Gold and SDR certificate accounts Coin Cash items in process of collection Others Currency in circulation Reserves (bank deposits) U.S Treasury deposits Foreign and other deposits Deferred-availability cash items Others and capital accounts