The Fed & Financial Stability
The de facto 3rd element of the Fed's mandate
What is financial stability?
Monetary policies that vary in response to evolving economic and financial conditions.
What are cyclical policies?
The person who appoints members of the Board of Governors.
Who is the President of the United States?
When the Federal Reserve was created.
What is 1913?
The person who said, "The Federal Reserve is in the business of lending, not spending."
Who is Jay Powell?
When a stock market crash tends to be followed by a recession.
What is when there is also a tightening of credit?
Policies intended to enhance the overall resilience of the financial system against shocks.
What are structural policies?
The length of a term of a member of the Board of Governors.
What is 14 years?
The number of Federal Reserve districts.
What is 12?
The person who said, "The Fed is like a powerful golfer who can't score because he has no touch. He can't putt."
Who is President Donald Trump?
The tendency of monetary easing to promote risk-taking.
What is the risk-taking channel of monetary policy?
Policies aimed at promoting the stability of the financial system as a whole.
What are macroprudential policies?
When the President can fire a member of the Fed's Board of Governors.
What is "for cause"?
The only state to have two Federal Reserve district banks.
What is Missouri?
The person who said, "To end a panic, lend early and freely, to solvent firms with good collateral, at a penalty rate..."
Who is Walter Bagehot? (Bagehot's Dictum"
The sector not regulated by the Fed prior to the 2008 financial crisis.
What is the shadow banking sector?
Policies that promote stability, efficiency & fairness in individual financial firms and markets, without consideration of whole-system stability.
What are microprudential policies?
How the Fed is funded
What is with its own profits?
The Fed's mandate per the 1977 amendments to the Federal Reserve Act.
What are "stable prices, maximum employment, and moderate long-term interest rates"?
Who are members of the Clinton administration?
According to one paper cited by Bernanke, how much the Fed would have had to raise the Federal Funds Rate to prevent the housing bubble?
What is 8 percentage points?
The use of monetary policy to lean against financial risks.
What is Lean Against the Wind Policy (LAWP)?
The person who approves all emergency loans made under section 13(3) of the Federal Reserve Act (as amended by the Dodd-Frank Act).
Who is the Secretary of the Treasury?
Freebie! Your favorite Federal Reserve Chair!
Who is [insert name of your favorite here]?
Who is William McChesney Martin?