大二上期末復習-職協(xié)cic貨銀chapter128課件

1、Chapter 14Structure of Central Banks and the Federal Reserve System2Formal Structure of the Fed3Federal Reserve Districts4Informal Structure of the Fed5Central Bank IndependenceFactors making Fed independent1.Members of Board have long terms2.Fed is financially independent: This is most importantFac

2、tors making Fed dependent1.Congress can amend Fed legislation2.President appoints Chairmen and Board members can influence legislationOverall: Fed is quite independentOther Central Banks1.Bank of England least independent: Govt. makes policy decisions2.European Central Bank: most independentprice st

3、ability primary goal3.Bank of Canada and Japan: fair degree of independence, but not all on paper4.Trend to greater independence: New Zealand, European nations6Explaining Central Bank BehaviorTheory of bureaucratic behavior1.Is an example of principal-agent problem2.Bureaucracy often acts in own int

4、erestImplications for Central Banks:1.Act to preserve independence2.Try to avoid controversy: often plays games3.Seek additional power over banksShould Fed be Independent?Case For:1.Independent Fed likely has longer-run objectives, politicians dont: evidence is independence produces better policy es throughout the whole2.Avoids political business cycle3.Less likely deficits will be inflationaryCase Against:1.Fed may not be accountable2.Hinders co