ICL: THE FED AND MONETARY POLICY - BROKEN TOOLS - One Session
THE FED AND MONETARY POLICY - BROKEN TOOLS by Dr. John Van Vliet
Governments typically attempt to promote economic prosperity through a combination of fiscal policy and monetary policy. Today, however, monetary policy is broken. The course will begin with a simple presentation of monetary policy, the role of the FED, and the three traditional tools of monetary policy: the Reserve Ration, The Discount Rate and Open Market Operations. Then we will look at a new tool, Paying Interest of Reserves, and discover how the fourth tool has crippled the Reserve Ration and the Discount Rate. We will also note that nearly a decade of quantitative easing has damaged Open Market Operations. We will conclude with speculation and, I hope, discussion about the consequences of this situation.
Dr. Van Vliet is a Professor of Business and Public Policy at Young Harris College. Born at Fort Benning, Ga., the home of the Infantry, John spent his youth as an Army brat and then followed in his father’s footsteps by serving 24 years in the US Army. He served in various capacities, such as Commander, Plans Officer, Personnel Officer, Intelligence Officer and Military Attaché. He is proud to claim the 75th Ranger Regiment as his regiment. Dr. Van Vliet retired as a Lieutenant Colonel in 1994 and started his second career in industrial automation and parts distribution. He is now in his third career as a college professor. Dr. Van Vliet is married to his high school sweetheart. They live in Hiawassee, Ga. and have two grown daughters and three young grandsons.