Lectures (Video)
- 1. Finance and Insurance as Powerful Forces in Our Economy and Society
- 2. The Universal Principle of Risk Management: Pooling and the Hedging of Risks
- 3. Technology and Invention in Finance
- 4. Portfolio Diversification and Supporting Financial Institutions (CAPM Model)
- 5. Insurance: The Archetypal Risk Management Institution
- 6. Efficient Markets vs. Excess Volatility
- 7. Behavioral Finance: The Role of Psychology
- 8. Human Foibles, Fraud, Manipulation, and Regulation
- 9. Guest Lecture by David Swensen
- 10. Debt Markets: Term Structure
- 11. Stocks
- 12. Real Estate Finance and Its Vulnerability to Crisis
- 13. Banking: Successes and Failures
- 14. Guest Lecture by Andrew Redleaf
- 15. Guest Lecture by Carl Icahn
- 16. The Evolution and Perfection of Monetary Policy
- 17. Investment Banking and Secondary Markets
- 18. Professional Money Managers and Their Influence
- 19. Brokerage, ECNs, etc.
- 20. Guest Lecture by Stephen Schwarzman
- 21. Forwards and Futures
- 22. Stock Index, Oil and Other Futures Markets
- 23. Options Markets
- 24. Making It Work for Real People: The Democratization of Finance
- 25. Okun Lecture: Learning from and Responding to Financial Crisis, Part I
- 26. Okun Lecture: Learning from and Responding to Financial Crisis, Part II
Financial Markets - Lecture 16
Get the Flash Player to view video.
Lecture 16 - The Evolution and Perfection of Monetary Policy
Central Banks, originally created as bankers' banks, implement monetary policy using their leverage over the supply of money and credit standards. Since the Bank of England was founded in 1694, through the gold standard which lasted until the 1930s, and into modern times, central banks have pursued monetary policy to stabilize the banking system. Central banks monitor currency flows and inflation, acting when crises, such as bank runs, emerged. More recently, central banks have taken an increasingly expansive role in stabilizing economic fluctuations. In the yet to be confirmed current recession, the Federal Reserve has used open market operations and innovative financial arrangements to try to forestall the recession and bail out failing financial institutions.
Prof. Robert Shiller
ECON 252 Financial Markets, Spring 2008 (Yale University: Open Yale) http://oyc.yale.edu Date accessed: 2009-01-06 License: Creative Commons BY-NC-SA |