Macroeconomics monetary policy/Monetary tools

Readings: Monetary terms, and the roll of central banks

Bank of Italy

It's important that you understand not just the policy implications of the various banking systems, and how they create money, but also that you have a clear understanding of the terms that are used to describe the different parts in these systems.

Read John Petroff's "Macroeconomics, Chapter 10: Money"to learn the key terms and definitions for these elements.

Then read Principles of Macroeconomics: "Chapter 9, Section 3: The Federal Reserve System" and do the "Try It" exercises. This reading will provide additional perspectives and insight on the role of central banks and how they create and destroy money.

Footnotes

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