The economics of money, banking, and financial markets

Inside the Fed  The Appointment of Paul Volcker, Anti-Inflation Hawk  604

Appoint “Conservative” Central Bankers ............................................................................. 604

Summary 605  •  Key Terms 605  •  Questions 605  •  Applied Problems 606  •   

Data Analysis Problems  607   •   Web Exercises  607

CHAPTER 25

Transmission Mechanisms of Monetary Policy 

608

Transmission Mechanisms of Monetary Policy ...................................................................608

Traditional Interest-Rate Channels ...................................................................................... 609

Other Asset Price Channels ................................................................................................ 610

Credit View ........................................................................................................................ 613

FYI  Consumers’ Balance Sheets and the Great Depression  615

Why Are Credit Channels Likely to Be Important?.............................................................. 616

APPLICATION

 The Great Recession ..........................................................................617

Lessons for Monetary Policy ....................................................................................................617

APPLICATION

  Applying the Monetary Policy Lessons to Japan’s  

Two Lost Decades .............................................................................................619

Summary 620  •  Key Terms 620  •  Questions 620  •  Applied Problems 621  •   

Data Analysis Problems  622   •   Web Exercises  622   •   Web References  622