Comments on: The Federal Reserve and Monetary Policy

By: oacholon01

oacholon01 — Thu, 17 Sep 2009 22:49:34 +0000

.The kind of impact middle income americans will have on the u.s economy going foward is more supply over demand,unemployment rates likely to go up which may also affect the economy cause people buy less and do more with what they have,people hours been cut out from work due to the fact the economy is bad which affects their spending which also affects the economy.
my point is this the more people have the more they spend the less they have the less they spend.

By: 54 witch

54 witch — Tue, 15 Sep 2009 17:24:10 +0000

people are holding on tight to there wallets and pocketbooks after years of uncontrolled spending.the usa is at a high on savinging this year. people are thinking twice about there purchases,wants and needs are big concern,just what can the do without and what they really need is playing a very big part in this economy. with people holding on tight to there money i think it will be a long time before people get caught with there pants down again as they did this last year. it going to be sometime before consumers feel the worst has past…got luck america we are going to need it………

By: jleclair09

jleclair09 — Mon, 14 Sep 2009 19:00:44 +0000

im really not shore what any of that means, thats why i am in this class.
but i have been playing with this forextrader game online and i seem to be doing ok at it i collect 200,000 $ in divedends in the past hour. im sorry if none of this is relavent but i really have no clue whats a monetary plan is.
i think that for the economy to get better we have to spend money to put revenue back into the businesses so we can have a demand for jobs. i hope that was ok.

By: krissyelizaz

krissyelizaz — Thu, 25 Jun 2009 11:23:18 +0000

I couldn’t help but read NDN1’s comment when I first clicked onto this page. I do have a feeling that if the Federal Interest is .25, it is not going to stay that long. If the bonds are bought back, the interest rates will raise, but how long would it take?

By: kmaz

kmaz — Thu, 25 Jun 2009 11:18:35 +0000

NDN1 has pretty much said it all…i definitely agree with you. The fed needs to put more money into the bank reserves..what denofearth said about more working people, leads to more money being spent will basically help out the economy a ton.

By: adri143

adri143 — Thu, 25 Jun 2009 01:47:19 +0000

NDN1 great job! I also agree with you. Banks need money and the one good tool would be too buy some bonds back to the banks. The banks need money to lend. If banks can lend money then other companys wont be hurting so badly! If this happens interest rates will start to raise!

By: denofearth

denofearth — Thu, 25 Jun 2009 00:17:03 +0000

NDN1….I concur.
Increase money supply in hopes to stimulate economy to increase lendable funds to create jobs which will in turn decrease debt due to higher productivity and less unemployment benefits being doled out. More working people = more working people buying more stuff = happy. Reform medicare and social security programs. Cut frivolous government spending on silly programs.

By: diamond

diamond — Wed, 24 Jun 2009 18:46:38 +0000

I agree with ndn1. I think the fed needs to buy back bonds and put more money into the bank reserves. I think intrest rates should go back up slowly.

By: tullis88

tullis88 — Wed, 24 Jun 2009 18:37:20 +0000

“NDN1″ has clearly done a good deal of reasearch on this topic, and has given me a better understanding of what we can do to help. Everyone is so worried about the failing economy that they have become frantic about not over spending. It is wise of citizens to focus on saving money, but what alot of people do not understand is that inorder to boost the incomony, we need to increase spending, both federally and locally. The best idea for the Fed is to focus on the market operations. They need to buy back bonds and spend that money, as well as promote the markets so that citzens feel more comfortable spending their own money.

By: CTgirl

CTgirl — Wed, 24 Jun 2009 15:27:13 +0000

NDN1’s plans sound good. In my opinion, the Fed needs to keep spending and the consumer needs to help in the process to boost the economy. I think the Feb can’t do anything about the bank reserve level because it is 0% now. They can’t go below that. If it goes to -%, then the country will experience inflation, which creates another problem. So we would not consider that method. I believe the only option that the Feb should consider is the open market operations. FOMC should buy back the existing bonds and spend the money in many possible ways.