Marginal URLs:
- p. 396: Go to http://www.federalreserve.gov/releases/h3/Current/ to see Federal Reserve reports on the current amounts of required and excess reserves at U.S. depository institutions.
- p. 410: To learn more from the Federal Reserve Bank of St. Louis about the growth of sweep accounts, go to http://research.stlouisfed.org/aggreg/, and under "Retail Deposit Sweep Programs," click on "Article: Sweeps Distort M1 Growth." For the latest data, back up and click on "Data: Federal Reserve Board Data on OCD Sweep Account Programs."
- p. 413: Go to http://www.federalreserve.gov/fomc/ learn about the Federal Reserve's current policy regarding open market operations. Scan down the page, and select the "Minutes" for the most recent date.
Issues and Applications, "Together, Bankers Cry, 'Please Deposit Your Cash!'"—Web Resources:
Issues and Applications, "Ballooning Excess Reserves and a Shrinking Money Multiplier"—Web Resources, Update Edition:
Economics on the Net:
E-Checks and the Money Supply
In this chapter, you learned about how monetary policy actions of the Federal Reserve induce changes in total deposits in the banking system. Now let's think about monetary policymaking in a world with online checking.
Title: What Is an eCheck?
Navigation: Go directly to an online article describing eChecks at http://www.dummies.com/WileyCDA/DummiesArticle/The-eCheck-s-in-the-E-Mail.id-2978.html.
Application: Read the discussion, and then answer the following questions.
- Are e-checks substitutes for currency and coins, or are they substitutes for traditional paper checks? Does the answer to this question make a difference for how e-checks are likely to feature in the money multiplier process?
- Suppose that there is widespread adoption of e-check technology by consumers and businesses. Would this affect the basic money multiplier model that we developed in this chapter? If so, how? If not, why not?
