Acronyms
This committee meets about eight times a year to set the target range for the federal funds rate.
What is the FOMC (federal open market committee)?
The Fed’s dual mandate is maximum employment and this.
What is stable prices (low, stable inflation)?
With a nominal interest rate of 5 percent and inflation of 3 percent, this is the approximate real interest rate.
What is 2 percent?
This UW hub provides resources to help you find intrenships, improve your resume, networking and interview skills, as well as highlight career options for econ majors.
What is the Economic Career Development Office
When the government spends more than it collects in taxes in a single year, it runs this.
What is a budget deficit?
These three letters stand for the price index the Fed uses as its primary measure of inflation, based on what households spend on goods and services.
What is PCE (personal consumption expenditures)?
A policymaker who favors raising interest rates to fight inflation, even at the risk of slower growth, is described with this bird-themed word.
What is hawkish (a hawk)?
If money supply grows 6 percent, velocity is constant, and real output grows 2 percent, inflation is approximately this.
What is 4 percent?
Who are the three economics acadmeic advisors at UW -Madison.
Sam Dzuik, Madison Hartup, Alicia Johanning
This is the total of all past deficits minus surpluses, which the Treasury finances by selling bonds.
What is the national debt?
These two letters stand for the policy of buying long-term securities to push down long-term rates once short-term rates are near zero.
What is QE (quantitative easing)?
This phrase describes the Fed’s goal of bringing inflation down without triggering a recession.
What is a soft landing?
Using the rule of 70, an economy growing 7 percent per year will double in about this many years.
What is 10 years?
This is a qualitative summary of current economic conditions across the 12 Federal Reserve Districts, published eight times a year
What is the Beige Book?
Programs like unemployment insurance and progressive income taxes cushion a downturn without Congress passing any new law. They are called these.
What are automatic stabilizers?
This is the rate the Fed pays banks on the reserves they hold at the Fed, and it is now the main tool for steering the federal funds rate.
What is IORB (interest on reserve balances)?
The Fed’s “dot plot” shows each participant’s projection for this.
What is the future federal funds rate?
A bond pays 50 dollars every year forever and sells for 500 dollars. Its yield is this.
What is 10 percent?
This Commerce Department agency publishes the official GDP estimates for the United States.
What is the Bureau of Economic Analysis (BEA)?
When government borrowing pushes up interest rates and reduces private investment, economists call this effect this.
What is crowding out?
This is the name of the Fed’s portfolio of Treasuries and mortgage-backed securities.
What is SOMA (System Open Market Account)?
Fed Chair Kevin Warsh gave his first keynote as chair this past August at this Wyoming symposium, hosted each year by the Kansas City Fed, where chairs often signal major policy shifts.
What is Jackson Hole?
The euro rises from 1.00 dollar to 1.25 dollars. The dollar’s value in euros falls by this percent.
What is 20 percent?
This private nonprofit research organization has a committee that officially announces when US recessions begin and end.
What is the NBER (National Bureau of Economic Research)?
This curve suggests that raising tax rates past a certain point can actually reduce tax revenue.
What is the Laffer curve?