Macroeconomics

588 |

I N D E X

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Federal Open Market Committee

(FOMC), 320

federal funds rate targets of, 415

Federal Reserve (Fed), 84, 446. See also

Monetary policy

European Central Bank versus, 435

inflation targeting and, 457–458

as lender of last resort, 554

money supply and. See Monetary

policy

monitoring of CPI by, 35

recapitalization of banking system

and, 556

supply shocks and, 281, 282

Fei, 83

Feldstein, Martin, 487–488

Fiat money, 81, 82–83

Financial crises

Asian, of 1997-1998, 360–361

Mexican, of 1994-1995, 358–360

U.S., of 2008-2009, 69, 332–334,

393, 474–475, 538, 541

Financial innovation, 563

Financial intermediaries, 69

Financial intermediation, 550

Financial markets, 69

equilibrium in, 67–68, 68f

Financial system, 69

Financing constraints, 537–538

Finland

collective bargaining in, 173t

devaluation by, 354

government debt of, 468t

inflation targeting in, 458

investment rate in, 202f

Firms. See also Business fixed invest-

ment; Factor entries; Inventory

investment; Labor; Production

entries

competitive, decisions facing, 50–51

demand for factors of, 51–54

production, 527

rental, 527

sticky prices and, 266t, 266–268, 267t

taxes of, investment and, 532–533

unions and, 173

First Report on the Public Credit, 456

Fiscal policy. See also Government pur-

chases; Tax(es)

analysis with macroeconomic models,

317–318, 318t

changes in saving and, 68–70

domestic, large open economies and,

157–158, 158f

domestic, trade balances and,

128–129, 129f

fixed exchange rates and, 352, 353f

floating exchange rates and, 345–347,

346f

foreign, trade balances and, 129–130,

130f

interaction with monetary policy,

315, 316f, 317

IS curve and, 299–301, 300f, 312f,

312–313, 314f

large open economies and, 375f,

375–376

long-term outlook for, 470–472

optimal, balanced budgets versus,

485–486

short-run equilibrium and, 312f,

312–313, 314f

Fischer, Stanley, 93n, 109n

Fisher, Irving, 94, 97, 449, 514, 519

Fisher effect, 95, 97, 98, 100

monetary policy and interest rates

and, 303–304

Fisher equation, 94–95, 98, 99, 411–412

Fisher indexes, 34n

Fixed exchange rates, 349–355

fiscal policy and, 352, 353f

floating exchange rates versus, 361–366

international gold standard and,

351–352

monetary policy and, 352–354, 353f

monetary unions as, 362–363

operation of, 350–351, 351f

recovery from Great Depression and,

354

trade policy and, 354–355, 355f

Fleming, J. Marcus, 339n

Flexible wages and prices, 12–13

Flinders Island, 217

Floating exchange rates, 345–348

fiscal policy and, 345–347, 346f

fixed exchange rates versus, 361–366

monetary policy and, 347f, 347–348

trade policy and, 348, 349f

Flows, 20

FOMC. See Federal Open Market

Committee (FOMC)

Ford, Gerald, 4

Ford, Henry, 175

Ford Motor Company, 175

Forecasting, economic, 448–450

mistakes in, 449–450, 450f

Foreign exchange, market for, in large

open economy, 156f, 156–157

Fractional-reserve banking, 549–550

France

collective bargaining in, 173t

exchange rate of, 354

government debt of, 468t

monetary contraction in, 276–277

real GDP in, 237t

unemployment in, 180, 181f

work hours in, 184, 484f

Frankel, Jeffrey A., 229

Free Silver movement, 104–105

Free trade, economic growth and,

228–229

Frictional unemployment, 166–169

causes of, 167

public policy and, 167–168

unemployment insurance and rate of

job finding and, 168–169