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ECONOMIC GROWTH: The long-run expansion of the economy's ability to produce output. This is one of five economic goals, specifically one of the three macro goals (stability and full employment are the other two). Economic growth is made possible by increasing the quantity or quality of the economy's resources (labor, capital, land, and entrepreneurship).

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Lesson 20: Federal Reserve System | Unit 4: Monetary Policy Page: 17 of 20

Topic: Moral Suasion <=PAGE BACK | PAGE NEXT=>

In addition to open market operations, discount rate, and reserve requirements, the Fed has an additional tool called moral suasion.

Moral suasion:

  • It is a policy in which the Fed, usually the Chairman of the Board of Governors, requests that the banking system take some sort of action.
  • These requests are usually contrary to what banks are currently doing and likely to do under current economic conditions.
  • Moral suasion can and does work in the short run, especially during crisis periods.

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AMERICAN ASSOCIATION FOR THE ADVANCEMENT OF SCIENCE

A scientific society whose main mission is to advance science and innovation throughout the world. The American Association for the Advancement of Science (AAAS for short) publishes one of the most respected scientific magazines called Science. The association and magazine have nearly 140,000 individual and institutional subscribers, plus 272 affiliated organizations in more than 130 countries, serving a total of 10 million individuals. The American Association for the Advancement of Science was founded in 1848 to represent all disciplines of science and to support scientific exchange and discussion of science and society issues.

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Today, you are likely to spend a great deal of time at the confiscated property police auction hoping to buy either a computer that can play video games and burn DVDs or a black duffle bag with velcro closures. Be on the lookout for celebrities who speak directly to you through your television.
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A U.S. dime has 118 groves around its edge, one fewer than a U.S. quarter.
"The greatest things ever done on Earth have been done little by little. "

-- William Jennings Bryan

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