Federal Reserve monetary policy has a profound effect on the U.S. economy and consequently on investments. I have been studying the economics and id politics of the Federal Reserve for many years and I have been teaching the subject as well. In this book, I combine my research on the subject with my teaching experience--trying to make a sometimes mysterious and sometimes esoteric subject understandable.
The institutional approach to monetary policy and the theories and principles involved in applying that knowledge to investing are laid out here for anyone interested in the subject. Although there are many books available on the Federal Reserve, and many books available on investing, the synthesis of institutional, theoretical, and practical applications found in this volume is unique.
In part I, the political origins of the Federal Reserve are reviewed, and a description of the power and structure of that institution is explored. Then, we take a close look at open market operations, the Federal Reserve's major tool used to impact on interest rates, the money supply, and the economy. Next, the nature of interest rates and the impact of the Fed on the various types of rates is explained. Part 11 concentrates on the impact of monetary policy on the financial markets, on specific investments, and on particular industries. In conclusion, we look at the hybrid, speculative, and derivative securities that can be used for hedging against changes in monetary policy and some suggestions for their use.
This book will be of interest to those who wish to understand or learn more about the Federal Reserve and U.S. monetary policy. It will be of