 |  Money and Capital Markets: Financial Institutions and Instruments in a Global Marketplace, 8/e Peter Rose,
Texas A & M University
The Tools and Goals of Central Bank Monetary Policy
Chapter Objectives
| You will understand how the policy tools available to the Federal Reserve and
other central banks around the world really work in carrying out a nation’s money
and credit policies and in affecting the cost and availability of loanable funds. |
| | | | You will explore the strengths and weaknesses of the monetary policy tools used
by the Fed and other central banks to achieve their objectives. |
| | | | You will discover how the Federal Reserve System controls credit and interest rate
levels inside the United States. |
| | | | You will see the various ways in which central bank policy actions affect a nation’s
economic goals of achieving full employment, controlling inflation, sustaining
adequate economic growth, and achieving a stable balance-of-payments position. |
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2003 McGraw-Hill Higher Education