Financial Markets (2008) with Robert Shiller - 16. The Evolution and Perfection of Monetary Policy

Financial Markets (ECON 252) Central Banks, originally created as bankers' banks, implement monetary policy using their leverage over the supply of money and credit standards. Since the Bank of England was founded in 1694, through the gold standard which lasted until the 1930s, and into modern times, central banks have pursued monetary policy to stabilize the banking system. Central banks monitor currency flows and inflation, acting when crises, such as bank runs, emerged. More recently, central banks have taken an increasingly expansive role in stabilizing economic fluctuations. In the yet to be confirmed current recession, the Federal Reserve has used open market operations and innovative financial arrangements to try to forestall the recession and bail out failing financial institutions. 00:00 - Chapter 1. Introduction: Thoughts on Icahn's Talk 04:49 - Chapter 2. The Gold Standard and the Earliest Central Bank 15:11 - Chapter 3. The Rise of the U.S. Federal Reserve System 25:30 - Chapter 4. The Abandonment of the Gold Standard and Adoption of Central Bank Autonomy 36:30 - Chapter 5. The Federal Funds Rate and Discount Rate 45:00 - Chapter 6. The Fed's Innovations against U.S. and Global Stagflation 01:00:47 - Chapter 7. A Trace though Recent Recessions and Conclusion Complete course materials are available at the Open Yale Courses website: http://open.yale.edu/courses This course was recorded in Spring 2008.