Lecture
This lecture covers the functions of the Federal Reserve as the central bank of the United States, including conducting monetary policy, supervising financial institutions, promoting stability, and ensuring efficiency in payment systems. It also discusses the longer-run goals of the Federal Open Market Committee (FOMC) in promoting maximum employment and stable prices. Tools of monetary policy such as open market operations, discount rates, and reserve requirements are explained. The lecture further explores monetary policy decisions, inflation, output gap, and the Federal Funds Rate. It delves into conventional and unconventional monetary policy measures implemented globally, with a focus on the Swiss National Bank. Basic economic concepts related to consumption, saving, labor, and monetary policy rules are also discussed.