Monday 907
Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 10 Money and Prices in the Long Run Chapter 29 of 36 The Monetary System Section 10 of 22 … The Federal Open Market Committee (FOMC) is comprised of · the seven members of the Federal Reserve Bank (Fed) board of governors · five of the twelve Fed regional bank presidents At each FOMC meeting held every six weeks in D.C. all twelve Fed regional bank presidents attend but only five get to vote. The five with voting rights rotate among the twelve regional presidents. The president of the New York Fed always gets a vote, because · New York is the traditional financial center of the U.S. economy · all Fed purchases and sales of government bonds are conducted at the New York branch … The FOMC has the power to increase or decrease the number of dollars circulating in the economy. The Fed's primary tool of money supply control is the open-market operation, which is the purchase and sale of U.S. government bonds...