Bănci centrale

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Bănci centrale

Mesaj Scris de Beauty la data de Lun 7 Noi 2011 - 22:35

Bănci centrale

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Re: Bănci centrale

Mesaj Scris de Beauty la data de Lun 7 Noi 2011 - 22:51

Federal Reserve System - FED

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[Trebuie sa fiti inscris si conectat pentru a vedea acest link] - FED Beige Book
[Trebuie sa fiti inscris si conectat pentru a vedea acest link] - Federal Open Market Committee - meeting calendars, statements, and minutes


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The Fed is the gatekeeper of the U.S. economy and is part of the federal government. Based in Washington, D.C., the Fed is the bank of the U.S. government and regulates the nation's financial institutions. It's comprised of a network of 12 Federal Reserve Banks and a number of branches. This is all overseen by the Fed's Board of Governors.

Besides being the nation's central bank, the Fed studies economic trends and makes policy decisions on how to make the economy "run better." The Fed is an independent agency—which means it can make decisions on its own, without needing approval from any other branch of government. However, it is subject to questions from Congress over its actions. The Federal Reserve chairman regularly testifies to both the Senate and the House. But while the Fed has to explain itself, it is theoretically free from political pressure. One caveat on this 'freedom'—Fed board members are nominated by the President and must be approved by the Senate.

What does the Federal Reserve System do?

The Fed's mandate is "to promote sustainable growth, high levels of employment, stability of prices to help preserve the purchasing power of the dollar and moderate long-term interest rates," according to the Federal Reserve's web site. What does that mean? The Fed has to make sure the U.S. has a sound banking system and a healthy economy. To do that, the Fed makes decisions over monetary policy to help maintain employment, keep prices stable, and keep interest rates at a level that helps the economy. It also supervises and regulates banks to make sure they are safe places for people to keep their money, and to protect consumers’ credit rights.

But there's more.

The Fed plays a major role in clearing checks, processing electronic payments, and distributing coin and paper money to the nation's banks, credit unions, savings and loan associations. For example, when you cash a check or have money electronically transferred, there is a good chance that a Fed Bank will handle the transfer of money from one bank to another. The Federal Reserve System also conducts research on the U.S. and regional economies and distributes information about the economy to the public through published articles, speeches by board members, seminars and web sites.

This information is released to the public as part of the Fed's mandate to study the economy.

Two important outlets for this information are:

- The Beige Book—named this way because of the report's tan cover. It's a report published eight times per year. Each Federal Reserve bank gathers anecdotal information on current economic conditions in its district. The beige book generally consists of reports from bank and branch directors and interviews with key business contacts, economists, market experts, and other sources.
- Fed Minutes—these are notes from discussions the Federal Open Market Committee has over economic policy. They are released eight times a year, after each meeting. They often detail disagreements between members over what policy to follow.
These two reports are followed very closely—by the stock market and economists in general— to gauge how the economy is doing and what the Federal Reserve board is thinking.


When was the Federal Reserve created and why?

The U.S. Congress created the Federal Reserve System on December 23, 1913, with the signing of the Federal Reserve Act by then-President Woodrow Wilson. Before then, the U.S. has had two major periods of central banks—which could be considered an over-simplified form of the Federal Reserve—one starting in 1791 and the other in 1816. Each was an attempt to create a disciplined banking policy and help avoid economic collapses.However, fears of a central bank being too powerful in setting financial policy brought about their ends. Congress failed to renew the first national bank's charter in 1811. The 1816 central bank period ended in 1836 when then President Andrew Jackson refused to renew its charter—claiming the bank would be run, in his words, by "Eastern Elites."

However, a series of U.S. bank collapses in 1873, 1893 and especially in 1907, pushed many in Congress to call once again for a centralized banking system. In 1907, there was a massive run on the banks—people demanding their money—and the banks started recalling all of their loans to pay off customers. This was started after large blocks of fraudulent stocks and bonds were sold to corner the market on one firm—the United Copper Company. The scheme failed and banks who were part of the effort went bankrupt—and that spread to other banks across the country. The bank panic of 1907 resulted in a congressional investigation that concluded: "a central bank was necessary so that these kinds of panics would never happen again."

However, it wasn't until 1913 before a law was actually passed—when Congress was able to work out a compromise on the Fed's mandate.

What is monetary policy?

We've mentioned that the Fed makes decisions over monetary policy. So what is that? It's the regulation of interest rates and the availability of money in order to provide economic growth and prevent downturns. This is the nuts and bolts of what the Fed does.
If the economy needs to grow faster and create more jobs, the Fed can supply more credit to banks for lending. It can also lower interest rates that banks use to borrow money from the Fed, making it cheaper for banks to lend. This is referred to as the Discount Rate—the interest rate that an eligible depository institution is charged to borrow short-term funds directly from a Federal Reserve Bank.

The Fed can also lower banks' reserves—meaning banks would need to carry less money on their books—and can lend more to businesses and consumers as well as to other banks. This tactic increases the money supply in the economy. Another way the Fed increases the money supply is by buying government securities, like treasury bonds, from the public. This is a form of what's called quantitative easing. Buying government securities makes more money available with the aim of increasing consumer spending and boosting the economy.

Now, if the Fed believes the economy is growing too fast and needs to slow down and avoid inflation—the increased costs of goods and services—it's going to do the opposite of what we've just mentioned. To put some brakes on the economy, the Fed will increase interest rates for borrowing, make banks hold on to more of their money and therefore decrease lending. It will also stop buying securities, a strategy that in turn cuts down on the amount of money that's in the economy.

What is the FOMC?

This is the group within the Fed that makes the decisions we just mentioned. FOMC stands for the Federal Open Market Committee . The FOMC meets eight times per year to set key interest rates and to decide whether to increase or decrease the money supply—which the Fed does by buying and selling government securities. The FOMC consists of 12 members—the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the other 11 Reserve Bank presidents. The four Reserve Bank presidents serve one-year terms on a rotating basis. Non-voting Reserve Bank presidents attend the meetings of the Committee, participate in discussions, and contribute information about economic conditions in their District.

The Federal Reserve makes money—lots of it. The Fed has nearly $3 trillion in assets, as of July 2011. The majority of revenue comes from open market operations—specifically the interest on the Fed's portfolio of Treasury securities as well as the money that comes from the buying/selling of the securities and their derivatives. Other Fed revenue come from sales of financial services like check and electronic payment processing and discount loans to banks. There's also interest on foreign deposits within the Federal Banking system.

However, the Fed doesn't really keep the money. The government receives all of the system's annual profits—after certain expenses. In 2010, the Federal Reserve made a profit of $82 billion and transferred $79 billion to the U.S. Treasury.


How does the Fed affect U.S. citizens?

It has a major impact on daily lives of nearly every American. As we mentioned above, the Fed can raise interest rates to slow down the economy. That means buying a home or a car can be more expensive if you have to pay more interest on a loan. Credit card interest rates can also go up. An even greater impact could be fewer jobs as business costs to borrow money go up—those interest rates again—and firms may want to lay off people instead of hiring them.

And if the Fed cuts back on buying securities (quantitative easing) it is lowering the amount of money circulating in the economy—and creating less consumer spending. Of course, the opposite is true. If the Fed lowers interest rates and borrowing costs, that makes a home or car purchase cheaper. And that could also mean businesses would borrow money at a cheaper rate and think about hiring if the economy picks up steam and consumers are spending.

How is the Federal Reserve System made up?

Under the Federal Reserve System, the United States is divided into 12 districts. Each district has an actual bank, called a reserve bank, serving it. But it's not the type of bank where the average citizen deposits money. Rather, it hold the funds of the Fed, which we'll describe below. The 12 Reserve Banks are named after the city in which they are located. Those are Boston, New York, San Francisco, Philadelphia, Cleveland, Chicago, Richmond, St. Louis, Minneapolis, Atlanta, Kansas City, and Dallas. Each reserve bank is run by a staff headed by a president or chairman, who also help make up the very important Federal Open Market Committee.

What is the Board of Governors?

The Board of Governors oversees the Fed. It is made up of seven members who, as we mentioned above, are appointed by the President and confirmed by the Senate. The full term of a Board member is 14 years, and the appointments are staggered so that one term expires on each even-numbered year. The board members can come from within the Fed—many Federal Reserve bank presidents have gone from the banks to the board—or they can come from academia and other places. The President can appoint anyone he believes is qualified to serve.

A Chairman and Vice Chairman lead the Board. They too, are appointed by the President and confirmed by the Senate. But the nominees to these posts must already be members of the existing board. The terms for these two top positions are four years, but the Chairman and Vice Chairman may be reappointed for additional four-year terms—as long as their term as Board member is active.

How Has the Fed Changed Over the Years?

Various changes over the years have given the Fed more power and responsibilities. Before 1937 for example, there was no FOMC issuing economic policy statements. In the 1940s, the Fed and the banking industry developed the routing numbers that you see at the bottom of your checks—to identify the bank and account from which the check is written. This move led to the automation of check processing.In response to banking and other financial problems that developed in the 1980s, the Fed Board adopted a policy in 1985 requiring the Reserve Banks to inspect once a year the various holding companies of the nation's larger banks. This is to make sure the banks themselves have enough reserve funds.

In 1991, the Right to Truth in Savings Act empowered the Fed to require that banks disclose account information to consumers, including the annual percentage yield; regulated advertising of savings accounts; and prohibited certain methods of calculating interest. As a result of the Recession of 2007-2009, the Fed will oversee the Bureau of Consumer Financial Protection (CFPB)—an independent bureau within the Fed to help give consumers the information they need to make financial decisions.


Ultima editare efectuata de catre Beauty in Dum 25 Dec 2011 - 14:12, editata de 1 ori

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Re: Bănci centrale

Mesaj Scris de Beauty la data de Mar 20 Dec 2011 - 22:52

Quantitative Easing


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Re: Bănci centrale

Mesaj Scris de Beauty la data de Dum 25 Dec 2011 - 13:43

Federal Reserve Open Market Operations

The United States central bank, the Federal Reserve, buys and sells assets in the open market. Since the central bank has the ability to print U.S. currency, it is able to influence both the money supply and interest rates through open market operations.


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Re: Bănci centrale

Mesaj Scris de Beauty la data de Dum 25 Dec 2011 - 14:04

National Debt / Datoria Națională

Anyone who has taken out a car loan or bought a house with a mortgage has taken on debt. It's the same for countries. They often need to borrow money to keep services going, with the promise to pay it back.

What is the National Debt?

National debt is the sum of all outstanding debt owed by the federal government. It includes not only the money the government has borrowed, but also the interest it must pay on the borrowed money. The government goes into debt when it doesn't collect enough revenue to cover the expenses it incurs from spending on programs such as the military, or building roads and bridges. The revenues come from corporate and income taxes, and the fees the government imposes, such as for visas and passports, student loans, and admission to national parks.

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What is the Deficit?

The deficit refers to the difference, in a single year, between government receipts and spending. Those deficits become the national debt when they are added together. They're tied to each other, but they're different.

Deficit spending is sometimes viewed as temporary but necessary. For the government, that might be true if it needs to spend money to fight a war. For a person, it might be true if he or she wants to take out a loan to buy a car.

But over time, running large annual deficits is a bad thing, for the government and for the average person. Here's why: think of the government's annual deficit spending like a person using a credit card to spend above his or her means. If that type of spending continues year after year, the interest on the credit card builds up. The minimum payments become larger and larger. Eventually, the charges become so unwieldy that the card holder can't pay them off without making big sacrifices (say, selling the house and the car) or declaring bankruptcy.

It's also important to note that a government can still have a national debt even if there's no deficit in a specific year. Here's how that works.

In 2001, for instance, the government had a surplus of $127 billion. However, $127 billion was a surplus for that year alone and did not eliminate the national debt, which at that time was $5.9 trillion — from all the previous years of deficits.

What is the Debt Ceiling?

The debt ceiling is a cap, set by Congress, on how much debt the U.S. government can carry. The debt ceiling idea came about in 1917. Before then, Congress had to approve borrowing for each item when the government needed money.

But to have more flexibility as the U.S. entered World War I, lawmakers agreed to give the government approval for all borrowing — as long as the total was less than a specific number. That debt limit number — usually set at a high figure — would be set by Congress.

Whenever the government is going to exceed the debt limit, Congress has to vote its approval to raise it.

So looking at this in real money, the debt ceiling in 2011 is $14.294 trillion. The national debt is more than $14.5 trillion. Congress has to approve raising the debt limit. If it doesn't within a certain time frame, funds would not be available to pay bills.

The debt ceiling has frequently been raised — 74 times since March 1962 and 10 times since 2001.

History of U.S. National Debt

From its beginning as a nation, the U.S. has been in debt at one time or another, according to the Bureau of Public Debt. The country has usually spent more than it's taken in order to keep services going.

The Revolutionary War created a debt of $75 million. The fledgling government had to pay for its soldiers, along with food and supplies. To pay off the debt, the government sold bonds, which we'll see later is one way governments fund themselves.

It wasn't until 1835 — and after another war, the War of 1812 — that the U.S. was in the black.

The Civil War produced a massive round of debt, reaching a figure of $2.7 billion by 1864. After 1865, the U.S. ran deficits in 11 of the next 47 years, having surpluses in the other 36.

Jumping ahead to the 20th century, a major period of debt followed World War I and the build up for World War II, and social programs to fight the Great Depression caused a major increase in debt to $260 billion by 1950.

Over the years, government's role expanded with programs such as agricultural subsidies, highway construction, Medicare, Medicaid, public education, the federal courts, mail delivery, food and work safety inspectors, law protection agencies like the FBI, among others.

And of course there's defense — even with some cuts in the 1990s — leaving the U.S. still spending more for it that any other country.

The debt continued to grow from $260 billion in 1950 to $909 billion in 1980. Between 1980 and 1990, the debt more than tripled, according to the BPD.

How the Debt is Financed

If you've ever bought a savings bond, you've helped provide money to cover the debt. That money helps pay off the government's theoretical 'credit card.'

The government borrows money by selling Treasury Securities such as Treasury Bills or T-Bills— and bonds to the public and/or foreign countries.

These securities come with the promise of a payday with interest. They can be short-term payoff — say, three years — or they can be longer, up to 30 years.

Where Government Spends Money

In 1900, the government spent $332 million on defense, $297 million on domestic spending and other items such as interest on the debt for a total of $629 million in spending, according to the Treasury Department. But there was a surplus that year because the government took in $670 million in revenue.

Fast forward to 2010 and there's a change in spending and programs. The biggest cost was Medicare and Medicaid at $793 billion; and together they made up 23 percent of the budget, according to the Congressional Budget Office.

Next came Social Security at $701 billion or 20 percent, followed by defense spending at $698 billion and 20 percent of the budget.

Medicare, Medicaid and Social Security, along with such items as Congressional salaries, are considered mandatory payments—they have to be paid even if the money isn't in the government till.

And interest on the debt itself was $197 billion in 2010, or 6 percent of the budget.

Summing up 2010, the government had an annual deficit of $1.3 trillion, and the national debt at that time — the sum of all previous yearly deficits — was $13.1 trillion.

Before we move on, we need to note Social Security. Established in 1935, Social Security pays for itself through taxes collected on individuals and money it makes by investing in the government.

In 1968, it was included in the Federal budget. That changed in 1986 when it was taken 'off budget' — or not included as government spending — but has since been used in calculating total budget spending. So, while technically on the federal budget books, Social Security has its own source of revenue.

The rest of the debt is owned by countries including Japan, the United Kingdom, Brazil, Venezuela and Saudi Arabia. China owns 7.5 percent of the total U.S. debt, much less than popularly believed.

Why the Debt Matters

A high debt level affects the cost of living, interest rates to buy homes or cars, as well as the overall economy, say analysts.

Money owed to the people/countries/investors who subsidize the debt by buying debt instruments must be paid off.

If the investors and lenders believe the U.S. can't pay its national debt, they stop loaning the government money and the interest rates go up for banks and consumers.

Debt is repaid through higher taxes and/or spending cuts.

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Re: Bănci centrale

Mesaj Scris de Beauty la data de Dum 25 Dec 2011 - 14:21

Ben Bernanke

politics is politics, and the Federal Reserve tries to stay nonpartisan and out of those debates. I mean, our job is to do the best we can for the U.S. economy, to do what we can to promote our mandate of maximum employment and price stability, and although we must be accountable to the Congress over the longer term, in the short term, it’s very important that the Fed be free from political pressures. And therefore, we are going to make our decisions based on what’s good for the economy, and we’re not going to take any politics into account.
Chairman Bernanke’s Press Conference November 2, 2011

My best advice to Americans is to continue to live your lives, though, and to continue to think about your personal situation and try to make smart decisions based on your own financial position. Clearly, Americans are trying to improve their balance sheets; they’re trying to pay down debt. That’s, of course, important. At the same time, you want to make smart decisions, you want to make good investments, you want to budget properly. So financial literacy is a big part of this, and lack of financial literacy was one of the things that got us into this mess in the first place. So I would advise people to try to be smart about their finances. Unfortunately, we can’t disassociate ourselves from Europe; the things that are happening there do affect us, and that’s an unfortunate fact. I hope very much that the Europeans will find a set of solutions that will allow markets to calm down and take off some of the headwinds from the U.S. economy.
Chairman Bernanke’s Press Conference November 2, 2011

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Re: Bănci centrale

Mesaj Scris de Beauty la data de Dum 8 Apr 2012 - 21:22

The Beige Book

The beige book is an important indicator on the state of the U.S. economy and as such, is a critical tool for the Federal Reserve in making key decisions.

What is the beige book?

It's a commonly used name for a report from the Federal Reserve called the Summary of Commentary on Current Economic Conditions by Federal Reserve District. It's published just before the Federal Open Market Committee , or FOMC, meets to decide on interest rates and is used to inform the members on changes in the economy since the last meeting. This report is published eight times per year and released to the public, usually through business news organizations.

What information does it have?

Each Federal Reserve bank—and there are 12 of them around the country—gathers anecdotal information on current economic conditions in its district. The beige book generally consists of reports from bank and branch directors and interviews with key business contacts, economists, market experts, and other sources.The beige book is a summary of this information by district and sector.

In preparing for their meetings, FOMC members also receive the "green book," containing the FRB staff forecasts of the U.S. economy. This is coupled with the "blue book," which presents the board staff's analysis of monetary policy alternatives. Only the beige book is available to the public, and it is released approximately two weeks before each FOMC meeting.

Why is the information important?

The Fed uses this report, along with other indicators, to determine interest rate policy at FOMC meetings. For instance, if the beige book portrays inflationary pressure—an increase in prices on goods and services—the Fed may raise interest rates to slow down the economy. If the book portrays recessionary conditions—a slow economy with unemployment—the Fed may lower interest rates, which could help speed up consumer buying and lending to companies and boost employment.

When did the beige book start?

It was first used in 1970, but started becoming more well known by 1985 when former Dow Jones reporter Paul Cox requested to see the report. The request was granted, forcing competing journalists to demand access to it the following month.

Why is it called the beige book?

The Fed's internal copies are the color beige. However, the copies released to the press and public have white covers. The report initially had red covers and was known as the "red book" when it began in 1970. But the color and the name changed with the report's first public release in 1985.

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Re: Bănci centrale

Mesaj Scris de Beauty la data de Dum 30 Sept 2012 - 19:17

Îndoielile britanicilor vizavi de uniunea bancară


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Re: Bănci centrale

Mesaj Scris de Continut sponsorizat Astazi la 16:15


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