Discussion Questions:
Discussion Q1:
If the policy interest rate is near zero, what less conventional monetary policy tools might a central bank ue to stimulate the economy? How do these tools work? In what way is central banking in the euro-zone ara different from or similar to the federal Reserve system?
Discussion Q2:
What is the primary goal of monetary policy and what are the three primary tools available to the Federal Reserve to meet this goal? What is the effect of lowering the reserve requirement on the money supply throuh the deposit expansion multiplier?