Chapter Two: How Is The Money Supply Controlled?
Published: July 2, 2019
As the central bank of the United States, the Federal Reserve controls monetary policy by targeting interest rates and influencing the money supply. By raising the federal funds rate, it changes decisions by individuals and banks of how much currency to keep and how many deposits are held at banks.
Video Recorded: August 20, 2018
- What makes monetary policy important?
- How does monetary policy relate to politics?
- What are the cost and benefits to society of central bank independence?