Topics: Monetary Policy

3 Credits · Level: Graduate, Undergraduate

Monetary policy implementation has become more complex in the aftermath of the global financial crisis. This course will cover the FOMC’s current monetary policy tools; how they work, how they support each other, and the ways in which they are most likely to help the FOMC reach its objectives. As background for understanding implementation tools, the course will begin with an overview of how the payments system works, the pre-crisis evolution and legislative constraints of the Federal Reserve system, and current regulatory constraints that banks face when interacting with the Fed. The course will also cover the mechanics of the Fed’s interaction with relevant financial markets (overnight financing, Treasury and MBS markets). Time permitting, the course will wrap up with a look at the global implications of U.S. monetary policy implementation.