| Steven M. Reff Economics Lecturer University of Arizona (2007 - 2016) The 2015 University of Arizona Five-Star Faculty Award Steven Reff's Resume |
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Unit 4: Financial Sector
• Topic 4.1 Financial Assets
• Topic 4.2 Nominal v. Real Interest Rates
• Topic 4.3 Definition, Measurement, & Functions of Money
• Topic 4.4 The History of Banking and the Expansion of the Money Supply
• Topic 4.5 The History of the Money Market and Money Market Graph
• Topic 4.6 The Current Monetary Policy (2008 - Present)
• Topic 4.7 The Loanable Funds Market
• Topic 4.1 Financial Assets
• Topic 4.2 Nominal v. Real Interest Rates
• Topic 4.3 Definition, Measurement, & Functions of Money
• Topic 4.4 The History of Banking and the Expansion of the Money Supply
• Topic 4.5 The History of the Money Market and Money Market Graph
• Topic 4.6 The Current Monetary Policy (2008 - Present)
• Topic 4.7 The Loanable Funds Market
| (17% – 27% of the exam) |
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| Unit 4 Financial Sector |
| Week 8 |
| Principles of Macroeconomics |
| Day 1: Week 8 |
Topic 4.5 The History of the Money Market and Money Market Graph
| eVideos -- Short Videos: |
| eWorkbook Activities Interactive: |
| (3 min. or less, along with 3 multiple choice questions) |
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Topic 4.5 The History of the Money Market and Money Market Graph
| Day 2: Week 8 |
| eVideos -- Short Videos: |
| eWorkbook Activities Interactive: |
| eTextbook Reading: |
| (3 min. or less, along with 3 multiple choice questions) |
The Money Market Graph shows the supply of money and the demand for money.
This graph is historically important prior to September of 2008 as it indicated what
happened to nominal interest rates when there was a change in either of these curves.
This was a period of time of limited reserves.
This graph is historically important prior to September of 2008 as it indicated what
happened to nominal interest rates when there was a change in either of these curves.
This was a period of time of limited reserves.
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| Prior to 2008, the Federal Reserve System operated in a limited reserves environment where individual commercial banks held both required and excess reserves in their vaults or on reserve with the Federal Reserve. This was covered in this week, Week 7. After 2008 and currently, the Federal Reserve System operates in an ample reserves environment where commercial bank reserves are held at the FED as these banks now receive interest on their reserves sitting at the FED. This will be covered in week 8. |
Topic 4.2 The History of the Money Market and Money Market Graph
| Day 5: Week 8 |
The Money Market Graph prior to 2008 shows the supply of money and the demand
for money. This graph indicates what happened to nominal interest rates when there
was a change in either of these curves. This was a period of time of limited reserves.
for money. This graph indicates what happened to nominal interest rates when there
was a change in either of these curves. This was a period of time of limited reserves.
NOTE: Students DO NOT have to draw the Keynesian Range (horizontal portion) on their ASAD graphs.
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