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# 经济代写|宏观经济学代考Macroeconomics代写|MAE905 More about interest on reserves

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## 经济代写|宏观经济学代考Macroeconomics代写|More about interest on reserves

In good economic times, the interest paid on reserves is just part of the Fed’s toolkit. In times of crisis, it provides the Fed with the ability to pour reserves into the system while still being able to maintain a floor on its target rate. During the 2008-2009 recession, the Fed, with its Quantitative Easing programs, made monumental attempts at stimulus. Yet, due to pervasive lack of economic confidence, loan demand did not materialize. Banks were in a holding pattern. With few new profitable loans being issued and their Treasury securities now sitting at the Fed, profit margins were being squeezed. So, the implementation of payment of interest on excess reserves, while intended to be an addition to the Fed’s toolkit, served a secondary purpose of replacing some of the income banks had formerly received from their Treasury securities.

Whenever the Fed begins to taper QE actions, talk of unwinding its bond purchases invariably occurs. Some believe that it will lead to economic instability or inflation. Since we understand that, because loan creation and the money supply is not affected by the size of the banking system’s reserve pool, we also understand that tapering QE will not lead to inflation. However, the markets may react to perceived changes in Fed policy and that may lead to instability. Therefore, the Fed must use caution and employ various tools to control the Fed funds rate as it alters its program. The interest paid on excess reserves allows the Fed to control the rate more accurately and quickly. Effectively serving as the lower boundary, the interest rate paid on reserves serves makes it easier to fine tune the rate, providing the ability to make adjustments without changing the levels of reserves.

## 经济代写|宏观经济学代考Macroeconomics代写|Velocity and other economic indicators

Economists define the money supply in terms of layers which build successively upon each other, moving from the most liquid to the least. The most-narrow layer, called the monetary base, includes actual cash in circulation and reserve accounts at the central bank, while the broad category of $M 3$ encompasses larger, longer-term deposits, including institutional funds. $M 2$ includes all notes and coins in circulation, cash equivalents and cash accounts except for time deposits of $\$ 100,000$or more, so it is fairly representative of the currency available to us to carry out our daily activities. But why does keeping a measure of the money supply matter? Well, many economists believe that the size of our money supply can be used as one guide to understanding and predicting both short-term economic variables as well as longer-term movements such as inflation, helping Fed officials to determine the appropriate course of action in terms of monetary policy. To view the money supply as an economic indicator, one must recognize that it should be expressed in terms of its relationship to other economic measures. For example, based on U.S. quarterly data from 1981 to 2019, M2 multiplied by approximately$1.8$equals the Gross Domestic Product (GDP), with GDP being defined as the total output of goods and services for, typically, a 1-year period. Figure$5.4$shows the behavior of the velocity of M2 over this same time period: So, if M2$=\$10,000,000,000,000$ (\$10 trillion), then GDP would be approximately (\$18 trillion). That means each dollar is spent approximately $1.8$ times in a given year, which means that monetary velocity is equal to $1.8$. Since $1.8$ is the typical velocity, if M2 or GDP change so that velocity drops to $1.4$, it would mean that money is turning more slowly and producing less relative to GDP. This could signal an outbreak of inflation, because there is now surplus $\mathrm{M} 2$ in the economy relative to the norm. As the commonly repeated theory goes, if there is too much money chasing too few goods, the result could be price inflation or even an asset bubble.

# 宏观经济学代写

## 经济代写|宏观经济学代考Macroeconomics代写|Velocity and other economic indicators

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## MATLAB代写

MATLAB 是一种用于技术计算的高性能语言。它将计算、可视化和编程集成在一个易于使用的环境中，其中问题和解决方案以熟悉的数学符号表示。典型用途包括：数学和计算算法开发建模、仿真和原型制作数据分析、探索和可视化科学和工程图形应用程序开发，包括图形用户界面构建MATLAB 是一个交互式系统，其基本数据元素是一个不需要维度的数组。这使您可以解决许多技术计算问题，尤其是那些具有矩阵和向量公式的问题，而只需用 C 或 Fortran 等标量非交互式语言编写程序所需的时间的一小部分。MATLAB 名称代表矩阵实验室。MATLAB 最初的编写目的是提供对由 LINPACK 和 EISPACK 项目开发的矩阵软件的轻松访问，这两个项目共同代表了矩阵计算软件的最新技术。MATLAB 经过多年的发展，得到了许多用户的投入。在大学环境中，它是数学、工程和科学入门和高级课程的标准教学工具。在工业领域，MATLAB 是高效研究、开发和分析的首选工具。MATLAB 具有一系列称为工具箱的特定于应用程序的解决方案。对于大多数 MATLAB 用户来说非常重要，工具箱允许您学习应用专业技术。工具箱是 MATLAB 函数（M 文件）的综合集合，可扩展 MATLAB 环境以解决特定类别的问题。可用工具箱的领域包括信号处理、控制系统、神经网络、模糊逻辑、小波、仿真等。