Research Work 2

Question
How does the comments from the Fed affect the financial markets?
How?
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Slide 1: Slide
EconomieTertiary Education

This lesson contains 16 slides, with interactive quizzes and text slides.

time-iconLesson duration is: 1 min

Items in this lesson

Question
How does the comments from the Fed affect the financial markets?
How?

Slide 1 - Slide

Chapter 16:
The Federal Reserve and Monetary Policy

Slide 2 - Slide

Objectives
Describe the signals of Fed to the financial markets
Analyze the information from the Fed
Discuss the actions of Fed affecting the financial markets


Slide 3 - Slide

Read the case study on page 504
Answer the questions given below

Slide 4 - Slide

Why does the Fed chairman need to develop
strong communication techniques ? ​

Slide 5 - Mind map

Answer
If the Fed chairman is not completely clear when making statements, the
markets may respond in a negative way

Slide 6 - Slide

How does the Fed help the banking system?

Slide 7 - Open question

What message does the cartoon
convey about how the Fed has been known to give information?

Slide 8 - Mind map

Answer
The Fed has not been completely clear in the way it delivers information.

Slide 9 - Slide

In what way might Bernanke be following
in Greenspan’s footsteps?

Slide 10 - Open question

What kind of monetary policy did investors expect Bernanke to
follow -expansionary or contractionary policy? Explain your answer.​

Slide 11 - Mind map

Answer
contractionary policy, to combat
inflation

Slide 12 - Slide

How do articles A and C illustrate the rational expectations theory?

Slide 13 - Open question

Based on these three sources and your own knowledge, how would you describe the differences
and similarities between Greenspan and Bernanke and their impact on the market?

Slide 14 - Mind map

Answer
Bernanke’s speaking style seems to
be somewhat more forthright than Greenspan’s, and the markets are having trouble working out exactly how to react to what Bernanke says.

Slide 15 - Slide

What are the important points of the lesson?

Slide 16 - Mind map

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