New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Chapter 14

by: Joe Wise

Chapter 14 ECON 222 001

Joe Wise
GPA 3.86
Principles of Macroeconomics
Chandini Sankaran

Almost Ready


These notes were just uploaded, and will be ready to view shortly.

Purchase these notes here, or revisit this page.

Either way, we'll remind you when they're ready :)

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

Here are my notes from Chandini's lectures on November 17, 19, and 24. Hope they're helpful!
Principles of Macroeconomics
Chandini Sankaran
Class Notes
25 ?




Popular in Principles of Macroeconomics

Popular in Economcs

This 0 page Class Notes was uploaded by Joe Wise on Tuesday December 1, 2015. The Class Notes belongs to ECON 222 001 at University of South Carolina taught by Chandini Sankaran in Summer 2015. Since its upload, it has received 24 views. For similar materials see Principles of Macroeconomics in Economcs at University of South Carolina.


Reviews for Chapter 14


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 12/01/15
November 17 2015 Unexpected in ation redistributes wealth across a population arbitrarily Unanticipated or miscalculated in ation redistributes wealth from debtors to creditors Unanticipated or incorrectly anticipated de ation redistributes wealth from creditors to debtors De ation is more dangerous for an economy than in ation because it can create a dangerous downward spiral where no one wants to buy or produce anything because they know it will decrease in price The Federal Reserve is the central bank in The United States Economists consider money to be any asset that people will accept in exchange for goods and services as a payment Pretty much anything of value qualifies Liguidity is the ease at which an asset can be exchanged for an economy s main form of money Commodity money has an intrinsic value even if it isn t being used as money Fiat money is money authorized by a government or central bank that has no other uses Fiat money has the advantage of being more exible in its creation than commodity money but it also only works if people have faith in its value Money creates a standard unit of value which makes comparing prices much easier Money can also be stored for later use better than most other assets Money supply refers to the amount of money circulating in an economy November 19 2015 The total amount of money in an economy can be calculated differently depending on what you define as money As of July 2013 there is more money in checking account deposits in the United States than in physical currency Each generation trusts banks more and more Debit cards access checking accounts and the checking balance is money Credit cards however do not represent money because they borrow money on credit Credit cards represent debt rather than money Reserves are the money that banks keep in cash in their vaults or on deposit with the Federal Reserve Required reserves are the minimum that banks are legally required to keep in reserves It s around 10 Sometimes banks also choose to keep excess reserves on top of their required reserves When a bank gives out loans the money supply expands When a bank reduces its loans the money supply decreases Change in money supplyincrease in checking deposits decrease in money in circulation Simple deposit multiplier 1required reserves change in checking account depositschange in reserves M1 is made up of 0 Currency in circulation 0 Checking account deposits 0 Holdings of traveler s checks M2 is made up of 0 Savings account balances 0 Small denomination time deposits 0 Money market fund shares M3 is made up of 0 Large time deposits 0 Institutional money market funds 0 Short term repurchase agreements 0 Large liquid assets Money supply is often considered only M1 November 24 2015 A T account is a table that accounts for assets and liabilities For a bank this is usually in terms of reserves and loans as assets and deposits as liabilities Banks can choose not to lower their reserves When the required reserves ratio decreases This makes the Federal Reserve lose the ability to control money supply through required reserves Fractional reserve banking system is used by almost all countries and means that not all deposits are held in reserves A Bank run is When people try to go get their money out of the bank A bank panic is When everyone does this and banks can t pay everyone back The Federal Reserve as a central bank helps prevent this by reassuring people that they ll get paid eventually The banking act of 1933 established the Federal Deposit Insurance Corporation FDIC The FDIC insures deposits in many banks They insure up to a certain limit for each deposit ownership category 250000 currently In 1914 the Federal Reserve was created The Federal Reserve 0 Regulates banks by setting required reserve and tracking accounts 0 Acts as a lender of last resort to banks by making discount loans at a lower interest rate 0 Controls money supply The Board of Governors oversee the Federal Reserve There are also 12 districts of the Federal Reserve that regulate banks locally The Federal Open Market Committee meets in DC every 6 weeks and acts as the main policy maker for the Federal Reserve


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Jennifer McGill UCSF Med School

"Selling my MCAT study guides and notes has been a great source of side revenue while I'm in school. Some months I'm making over $500! Plus, it makes me happy knowing that I'm helping future med students with their MCAT."

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Parker Thompson 500 Startups

"It's a great way for students to improve their educational experience and it seemed like a product that everybody wants, so all the people participating are winning."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.