The Fed’s Non-quant: Beige Book
November 16, 2007 Toby Madden Federal Reserve Bank of Minneapolis
Disclaimer
The views expressed here are the presenter's and not necessarily those of the Federal Reserve Bank of Minneapolis or the Federal Reserve System.
Fed’s Duties
• Payments System • Safety and Soundness • Monetary Policy
Additional Resources
•Region Magazine •fedgazette
•Minneapolisfed.org •toby.madden@mpls.frb.org
Beige Book
•What •When •Who •How •Why
What
Summary of Commentary on Current Economic Conditions by Federal Reserve District
•Anecdotal •Recent •Economic Sector •By District
When
•8x per year •Released ~ 2 weeks b4 FOMC •Cut off 9 days b4 release •Compiled for 2 weeks
Who
•Each district’s economists •Part of 3 peoples jobs in Mpls
How
•Fed Surveys/Polls •News •Advisory Councils/BOD •Contacts • Associations
Why
•Timely •Stats < turning points •Flexible
Who Wants to Win Toby’s Money?
To tighten the money supply, the Federal Reserve a.decreases the reserve ratio. b.purchases government securities in the open market. c.sells government securities in the open market. d.decreases the discount rate.
To tighten the money supply, the Federal Reserve b.purchases government securities in the open market. c.sells government securities in the open market.
To tighten the money supply, the Federal Reserve
c.sells government securities in the open market.
A reduction in aggregate demand is likely to result in: a.inflation. b.recession. c.a sudden spurt of growth in production. d.increased consumption of crushed rock for concrete foundations.
A reduction in aggregate demand is likely to result in: a.inflation. b.recession.
A reduction in aggregate demand is likely to result in:
b.recession.
What is the cost of a “Free Lunch”?
What is the cost of a “Free Lunch”? Opportunity Cost
What rank did Minnesota have for high school attainment in 2006?
• • • • A - 1st B - 5th C - 10th D - 20th
What rank did Minnesota have for high school attainment in 2006?
• A - 1st • B - 5th
What rank did Minnesota have for high school attainment in 2006?
• A - 1st
What rank did Minnesota have for total high school spending per student in 2004?
• • • • A - 6th B - 11th C - 16th D – 21st
What rank did Minnesota have for total high school spending per student in 2004?
• C - 16th • D – 21st
What rank did Minnesota have for total high school spending per student in 2004?
• D – 21st
What was the 2006 population in Minnesota (according to the U.S. Census website)?
• • • • A – 5,167,101 B – 5,476,892 C – 5,811,739 D – 6,032,903
What was the 2006 population in Minnesota (according to the U.S. Census website)?
• A – 5,167,101 • C – 5,811,739
What was the 2006 population in Minnesota (according to the U.S. Census website)?
• A – 5,167,101
QUESTIONS
What are the expected changes in your company’s employment in 2008? Up Same Down