Posts tagged as "Bond Market"

Posted by ShopMesh on 2nd December 2009

Bond Fundamentals – Monetary Policy and Fiscal Policy

It’s the Federal Reserve Bank that influences the money supply. Three tools are used to implement monetary policy:
1. Open Market Operations
2. Discount Rates
3. Reserve Requirements
Since open market operations is the tool used most, we will cover it. Here’s how it works: When the economy is growing too fast and the Fed is worried about the [...]