Temporary Open Market Operations and Large-Scale Asset Purchases
The Federal Reserve employs both conventional and unconventional monetary policy tools to promote maximum employment and price stability. This special Summer 2020 issue of Page One Economics reviews the monetary policy framework under ample reserves and then describes the use of temporary open market operations and large-scale asset purchase programs to promote the stability of the financial system that facilitates access to credit for households and business.
Unemployment Insurance: A Tried and True Safety Net
Today, every state has an unemployment insurance program. This provides some income to qualified, unemployed workers who have lost their jobs through no fault of their own. But how did these programs begin and how does the federal-state partnership work? The December 2020 issue of Page One Economics: Focus on Finance describes this partnership that began in 1935.
Data Citations with FRED
FRED (Federal Reserve Economic Data) provides access to a wide range of time-series data from more than 100 sources. When using FRED to write reports or do statistical research, it is important to cite the source of the data you use: A complete data citation helps the reader find the data you use or reference. This article describes best data citation practices for new data users and serves as a reference for advanced data users.
Why Is It So Difficult To Buy a High-Quality Used Car?
With prices of new vehicles at all-time highs, many buyers are looking for used vehicles. It can be challenging, though, to figure out what is or isn?t a good deal. The September 2016 issue of Page One Economics explains why asymmetric information makes it difficult for used-car buyers to avoid ?lemons? and why lemons are a larger problem for the used-car market.
The Anchoring Effect
Consumers often measure whether they got a good deal on a purchase by the difference between the original price and a sales price. The bigger the difference is, the better the deal feels. The original price a consumer is exposed to becomes a reference point, or an anchor. The April 2021 issue of Page One Economics: Focus on Finance explains the anchoring effect and the role it plays in the decision making process when it comes to what consumers are willing to pay for a good or service.
Falling Oil Prices Create Winners and Losers
Oil prices affect the U.S. economy in many ways. For example, fluctuations in the price of oil can influence inflation, unemployment, and disposable income. Some local economies with close ties to the oil industry, however, are affected even more directly in both positive and negative ways. This essay covers one recent example of the local impact of oil prices.
Making sense of the ups and downs of prices
"Back in my day, a gallon of gas cost a quarter!" Has your grandfather ever said something like this to make a point about how expensive things are now? The price of gasoline indeed used to be much lower. In fact, the price of gasoline has risen from a little over $1 per gallon in 1992 to a little over $3.50 per gallon 20 years later.
Bankruptcy: When All Else Fails
For most people, bankruptcy should be avoided. Reducing the possibility of bankruptcy starts with good financial preparation. Preparation includes developing your human capital to earn a higher income, establishing and living on your budget, saving money, and paying your bills on time. If disaster strikes, it is important to know that bankruptcy is an option, albeit a last resort.
What’s in Your Market Basket? Why Your Inflation Rate Might Differ from the Average
Does it feel like your dollars go as far as they used to? If not, how does that mesh when reports say inflation rates are lower than average? The October issue of Page One Economics explains the disconnect between what you might experience as a consumer and what the data show.
The legacy of the Olympics: economic burden or boon?
Competition, sportsmanship, and national pride are the foundations of the Olympics, but how much do the Olympics cost the host city and country? What are some of the economic benefits and costs? Is the investment in the Olympics worth it in the end? Read about previous host experiences with the economic side of the Olympics in this month's Page One Economics Newsletter ?The Legacy of the Olympics: Economic Burden or Boon?? (see related graph: "Olympics-Related Temporary Increase in Employment"