The three ways the Fed regulates money supply and thus aggregate demand.?
450804
from, an article about the "Central Banking System.  Money Supply" on http://www.sparknotes.com/economics/macro/banking/section2.rhtml\n\nQuoting,\n\n"There are three basic ways that the Fed can affect the money supply. \n\nThe first is through open market operations. \n\nThe second is by changing the reserve requirement. \n\nThe third is through changing the federal funds interest rate. \n\nEach of these actions in some way affects the total amount of currency or deposits available to the public."
1129475
Sure. the demand for money holdings just has to rise faster than the rise in money supply.
962638
The money flow.\nOur Tax dollars at work.\nThe evil root of money.\nThe money hungry palm of government.\nFat wallets.\n\n   Just a few i can think of...  good luck
970517
First of all prices of resources are supposed to be set by supply, demand, and production costs.\n\nI have done considerable research and found that Thomas Jefferson tried to link set amounts of Gold-Silver-Copper-Wheatgrains and labor {man hours needed to produce these products} together to accomplish stable prices, for all products, without inflation.\nIf you are an American you may have read that Gold and Silver, used as money, is still mandated by the U.S. Constitution. The USA had almost zero inflation for about 130 years under the Gold standard. \n\nUnfortunately, Jefferson couldn't predict the supply and demand side of the equation.\nWhich in some cases, in later years,  produced governmental pricing of products, a practice now outlawed which is called, price fixing.\n\nThe bottom line is:\nProducers add costs of production and a profit into the price they charge for the finished product. If they have a monopoly on their product, they can charge anything they want. That's why compitition on products keeps prices lower.\n\nGovernments are not in the business of producing products. Therefore, it is my opinion they are not qualified to set prices on products.\n\nOne other point, the dollar is supposed to get it's value by adding together the value of a country's resources, and subtracting the amount of government debt incurred. However using unbacked paper money, prices on resources can be inflated to overcome the debt burden side of the equation, to give the illusion of a strong dollar, on the world market. \n\nI hope this answer is somewhat understandable.
801457
Lots.  Let's see, where to start.  How about higher interest rates.  The Fed just keeps on increasing the rate to try to cool down the economy but this put pressure on everyone with adjustable rate mortgages and interest sensitive credit cards.  This sucks money out of the private sector as does the higher cost of gas and therefore we have less money in our pockets.  We tend to borrow more and with more credit card debt comes more chance of default.  As the cost of increased gas and therefore inflation then workers want raises and this pressures CEO's to play with the books to keep up their record profits.  How's that for a start?
934852
I know that it isn't "several" but the biggest is: why would they?  It isn't part of the function and purpose of the federal reserve.  They have plenty to do with their primary functions of monetary control through the banking industry.  \n\nPicture two stallions discussing the relative beauties of the fillies that prance by at some riding stable.  A cat walks by, why should they be interested in the cat?  It is the same with the federal reserve, stocks are not their thing.
182904
that demand drives supply and supply affects price
174594
supply/demand and outright bs manipulation
648089
http://en.wikipedia.org/wiki/Law_of_supply_and_demand
56670
The price of an item is determined mostly by who and how many want to buy it, and how many are able to buy it. (Basic Supply and Demand) By raising minimum wage we make more people able to buy, and more people willing to spend, which in turn raises prices and causes inflation.
46783
Only the Federal Reserve can authorize the creation of new money.  Today, however, most money is 'created' using open-market operations, and thus does not physically exist.
463902
At one time money was back up by precious metals (gold, silver).  You could take a twenty dollar gold certificate to any bank and they would have to give you that much in gold.  In the 1950s they dropped the gold standard and went to a debt standard.  For every dollar in circulation there is a dollar owed.  This is what causes inflation.  Example, in 1900 a twenty dollar gold piece would feed a family for a week or more, the same gold piece today will feed a family about the same amount of time.  Hope this helps.
662029
inflation arises when there is surplus funds in circulation. when bank rate decreases more and more people take loans and all and then the surplus of money will be circulated among public. by adjusting interest rates government can regulate the inflation to an extent.
716189
Technically, money supply is not inflation - but it is empirically associated with inflation.  \n\nInflation is typically taken from a consumer price index from a fixed basket of goods and services. While UK M1 rose 14.5% on broad measures for September 2006 (but only 5.1% on narrower measures), consumer prices rose 2.4% in October '06 (vs. 2.3% last year).  \n\n\n\nYou are right to point out that the market is awash in liquidity. Money comes from numerous sources - at its basic core bills, coins, checking and savings.  But the broader money supply (which is the one that matters) includes many other supplies - like the capital markets. \n\nWhere is all this cash coming from?  \n\nFirst and foremost, it is coming from loose monetary policy, residual from low interst rate environment post-9/11.  As interest rates went to 40-year lows in the US, Japan and Europe, borrowing costs got so cheap as to be extremely cheap.  This trigger asset reflation in real estate and commodities. Indirectly, it also help spur corporate earnings growth (double digit in the US, whereupon 7% is more like the average growth).  The asset reflation also gave consumer a base to start borrowing from, dipping into equity saved up in their houses. \n\nSecondly, the typical brake on liquidity - government bonds - has not been working.  Typically, centralized banks and treasuries issues more paper in order to soak up excess liquidity in the system.  For example, the US had to issue lots of new debt in 2005 to cover the costs of post-9/11 security and the two wars.  However, large trade imbalances have lead Asian and Gulf countries to purchase large amounts of these issues to 1) stabilize interest rates in countries with fixed or quasi-fixed currency regimes (e.g. China) or keep interest rates stable in those markets with floating currencies.   \n\nSo money supply has surged but without the surge in wages (revenue-side inflation) or prices (cost-side inflation).  How?  Basically, we are seeing a tsunami of capital formation - not at the consumer level - but at the corporate, government and asset level.  We are already seeing the side-effects of this capital formation through the emergence of private-equities, rise of hedge funds and record pace of corporate earnings. \n\nWhile we b*tch and moan about inflation at 3-4%, clearly we have short memories.  Woe were the days back in the 80s when itnerest rates were in the twenties or the seventies when we had to wait in line for gasoline and prices went up so fast that they didn't bother posting the price.  \n\nEverything is relative.  It hurts pretty bad going from a very long period of almost no inflation to "normal" inflation.\n\nBy the way... the US still publishes its M1 and M2, but discontinued M3.
166256
idk is not an answer, stop whoring for points.\n\nAs far as the real answer, all funds in the bank are secured by the federal reserve. Basically, it will never happen again in the forseeable future. Banks are required to hold a reserve of around 10% of all deposits and can borrow from the Federal Reserve at any time (although they prefer to borrow from other banks)\n\nThe banks, and the government, learned their lesson after the bank runs in the 40's
664685
a) Demand for dollars declines, reducing its value.\n\nb) Payments in China are in US currency, but if prices are lower, demand for dollar will decline as will its value.\n\nc) Assuming no decline in imports, demand for dollars increases, increasing its value.\n\nd) Increased supply likely, so value goes down.\n\ne) Relative demand for foreign currency increased, thus moving value of dollar down.\n\nMake sure you vote!\n\nc
266545
The Federal Reserve is owned by the United States of America, it is not privately owned.  Check out http://en.wikipedia.org/wiki/Federal_reserve for an explanation of the system, but basically the President appoints a Board of Governors that supervise a system of regional reserve banks and commercial member banks.  The board is currently headed by Ben Bernanke, who replaced Alan Greenspan earlier this year.