Monetary Policy Definitions
Easy-to-understand definitions of the most commonly used terms in monetary policy.
Beige Book
The Fed's description of the U.S. economy.
The Fed's description of the U.S. economy.
Contractionary Monetary Policy
Definition of contractionary monetary policy and how the Federal Reserve uses it.
Definition of contractionary monetary policy and how the Federal Reserve uses it.
Discount Rate
The Federal Reserve Discount Rate is the rate that the Fed charges banks to borrow from its discount window.
The Federal Reserve Discount Rate is the rate that the Fed charges banks to borrow from its discount window.
Discount Window
The Federal Reserve's discount window is how the Fed lends money overnight to banks.
The Federal Reserve's discount window is how the Fed lends money overnight to banks.
Expansionary Monetary Policy
A definition of expansionary monetary policy and how the Federal Reserve uses it.
A definition of expansionary monetary policy and how the Federal Reserve uses it.
Fed Funds Rate
A definition of the most important interest rate in the world.
A definition of the most important interest rate in the world.
Fed Funds
Fed funds, or Federal Reserve funds, are loans that banks make to each other to meet reserve requirements at Federal Reserve Banks.
Fed funds, or Federal Reserve funds, are loans that banks make to each other to meet reserve requirements at Federal Reserve Banks.
Inflation
An easy-to-use definition of inflation.
An easy-to-use definition of inflation.
Interest Rate
A definition of interest rate, including central bank interest rates.
A definition of interest rate, including central bank interest rates.
Irrational Exuberance
A phrase coined by Federal Reserve Chairman Alan Greenspan to describe the emotions driving the stock market in the late '90's.
A phrase coined by Federal Reserve Chairman Alan Greenspan to describe the emotions driving the stock market in the late '90's.
Monetary Policy
A definition of monetary policy and how it is different from fiscal policy.
A definition of monetary policy and how it is different from fiscal policy.
Monetary Report
The Federal Reserve's semi-annual report to Congress on the state of the U.S. economy.
The Federal Reserve's semi-annual report to Congress on the state of the U.S. economy.
Prime Interest Rate
The prime interest rate is what banks charge their best customers.
The prime interest rate is what banks charge their best customers.
Recession
When a good economy turns bad.
When a good economy turns bad.
Reserve Requirement
The Federal Reserve requires that banks keep a certain amount of cash on hand each night as the Reserve Requirement.
The Federal Reserve requires that banks keep a certain amount of cash on hand each night as the Reserve Requirement.