Monetary Policy
I chose to research and write on the topic of monetary policy. My two main sources of information were www.federalreserve.gov and www.frsbf.org. From my research I would define monetary policy as the macroeconomic act of keeping the country financially stable. According to www.frsbf.org “The object of monetary policy is to influence the performance of the economy as reflected in such factors as inflation, economic output, and employment. It works by affecting demand across the economy—that is, people's and firms' willingness to spend on goods and services”. The information that I located suggested that the main issues that monetary policy deals with are inflation and unemployment which usually affect each other.
Monetary policy is the responsibility of the Federal Reserve System who put the main responsibility of monetary policy on their Federal Open Market Committee (FOMC). The FOMC meets 8 times a year and has 12 members who meet to discuss the state of the economy and what changes can be made to help the economy. The main tools used in monetary policy are the manipulation of short term interest rates which can greatly affect demand as well as manipulating the discount rate and reserve requirements.
The discount rate is the interest rate the Federal Reserve Banks charge financial institutions for short-term loans of reserves. A change in the discount rate can decrease or encourage financial institutions’ lending and investment activities. ...
Evidence-based practice (EBP) entails the use of explicit, reliable, and judicious evidence to make effective decisions about the care of patients. This DNP student will introduce EBP with the IOWA model. The IOWA model applies to this DNP proposal. The IOWA model is an EBP applicable in healthcare setting and implemented to show the applicability of evidence in nursing to give the best outcome. Doody and Doody (2011) noted that the IOWA model focuses on problem-focused triggers and knowledge in undertaking quality improvement study. The steps involved include topic selection, team formation, evidence retrieval, grading evidence, developing an EBP evidence, implementation of EBP, and evaluation of the progress. These steps apply to this DNP proposal, showing best practices, guidelines, procedures, and policies
-1. How could the Federal Reserve prevent and solve financial crisis? – The function of Federal Reserve.
Monetary Policy is another policy used in Keynesianism which is a list of protocols designed to regulate the economy by setting the amount of money that is in circulation and controlled interest levels. The Federal Reserve system, also known as the central banking system in the U.S., which holds control of this policy. Monetary policy has three tools used by the Federal Reserve to enforce this policy. Reserve Requirement is the first tool that determines the lowest amount of money a bank must possess and is not able to lend out. The second way to enforce monetary policy is by using the discount rate or the interest rate a bank will charge.
In 1913, the Federal Reserve System was enacted, it has three primary objectives; eradicating the “pyramiding” of reserves in New York City and substitute it with a polycentric system of twelve reserve banks, which will help the banks with a more seasonal elastic supply of credit and minimize the tendency for banking panics (Calomiris, 1993). The discount rate that is set by the Federal Reserve System is used for interest rates charged to the commercial banks and other banks for overnight loans (discount window) borrowed from the Federal Reserve (Board of Governors of the Federal Reserve System, 2013). By discounting the loan rate, the banks would have lower liquidity problems because banks are able to borrow at a lower rate, which then reduces the pressure in the reserve markets and keeping the financial markets constant. To help the depository institutions, primary credit, the Federal Reserve Bank developed three rates of discount window, namely primary credit, secondary credit and seasonal credit.
Finally, the last tool the Fed can use is to adjust the discount rate. The discount rate is the interest rate at which the Federal Reserve charges commercial banks for a loan (Brue, 2004, p.
When evidence-based practice is employed into the healthcare system, the patient should be the one who will benefit the most from it. In nursing, it is extremely important to consistently provide excellent patient care and by employing evidence-based practice, it will allow such consistency to be implemented within the healthcare
...gional Federal Reserve Bank. Monetary policy regarding open market operations is established by the FOMC. Policy regarding reserve requirements and the discount rate is determined by the Federal Reserve Bank. Another role in which the Federal Reserve plays a major part is in the supervision and regulation of the U.S. banking system. The examination of institutions for safety and solidity - banking supervision - is shared with the Office of the Comptroller of the Currency, which supervises national banks, and the Federal Deposit Insurance Corporation, which supervises state banks that are not members of the Federal Reserve System. The implementation of the Federal Reserve in 1913 was truly a great assett to financial and American well being. Without the Federal Reserve, we would have no agency to control monetary policy and push the economy towards full employement.
By definition, the federal funds rate is the interest rate at which private depository institution (mostly banks) lend balances (federal funds) at the Federal Reserve to other depository institutions, usually overnight. Changing the target rate is one form of open market operations that the Chairman of the Federal Reserve uses to regulate the supply of money in the United States in the U.S economy. Short-term interest rates were relatively stable during the first half of the funds’ fiscal year. Toward the middle of the second half, however, short-term rates started to move down a little bit when concerns about the strength of the housing and credit market and the current economy led the Federal Reserve to reduce short-term rates. The Federal Reserve cut the federal funds rate by 25 basis points (0.25%) and pumped $41 billion of short-term reserves into the markets. On the daily basis, most businesses operate regardless of the Federal rate and completely independent of it. Coca-cola sells Coke by the truckload regardless of the trickle-down effect of the Federal Funds Rare. In addition, it generated gobs of excess cash that allowed it to service virtually and interest rate the banks threw at it. The Coca-cola company reports that the earnings per share of $1.77 for the year, versus $1.23 in the prior year. In addition, cash from operations has increased 15% to 5.5 billion. In addition, the fourth quarter earnings per share of $0.38 and the worldwide unit case volume growth of 3% in the fourth quarter and 4% for the full year. Opinions on if the Federal Reserve will raise interest rates in the future abound, with conventional wisdom siding with a rate increase. However, the decision probably will not affect what happens to stock prices as much as it would with news of corporate earnings surprises. With the benchmark lending rate at 1.5%, rates are still quite low – past economic recoveries have seen rates at 3% or higher at this stage.
●Applying evidence based practice into our daily nursing practice can improve the quality of care of the patients. It is a way of providing a high quality of care to patients
In the study of macroeconomics there are several sub factors that affect the economy either favorably or adversely. One dynamic of macroeconomics is monetary policy. Monetary policy consists of deliberate changes in the money supply to influence interest rates and thus the level of spending in the economy. “The goal of a monetary policy is to achieve and maintain price level stability, full employment and economic growth.” (McConnell & Brue, 2004).
Evidence-based nursing practice is essential in delivering a high quality care to the patients compare to the traditional practice. Studies show improved patient outcomes when the best evidence is used in delivery patient care. This essential mentions the steps of evidence-based practice process such as identification of the issue, acquire the best evidence regarding the issue, integration of the evidence, and the evaluation of the outcomes. The first step on this process is identification of the problem, and nurses are more than anyone else in medical field to identify problems or issues that arise in their clinical practice. Nurses are in often contact with the patients, are the ones that collect data, document and analyze this data. The second step of EBP is the conducting reliable research from different
The first major aspect of the monetary policy by the Federal Reserve is its interest rate policy. This interest rate policy is mainly determined by the figure for the federal funds rate, which is the rate at which commercial banks with balances held within the Federal Reserve can borrow from each other overnight in ord...
Evidenced-based practice is an extremely important function in the role as a registered nurse. In my preceptor rotation I have seen evidence-based practice demonstrated both effectively and ineffectively on the floor. In all instances when evidence- based practice was demonstrated effectively the patients were more comfortable post operatively and had must better outcomes.
Discount Rate, it is in fact, the interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank 's lending facility, (Board of Governors Federal Reserve System, n d). The financial institutions must borrow funds at this interest to the Federal Reserve System. Fed use this tool to control the supply of money something that will affect the inflation and the overall interest rates.
This policy aimed to reduce interest rates and stimulate investment