[Joseph_E._Stiglitz,_Carl_E._Walsh]_Economics(Bookos.org) (1)

exchange rates (continued)
appreciation and, 577, 761
borrowing and, 762–63
changes in, 577–80
currency and, 770–71, 772–74, 781
definition of, 758
depreciation and, 577, 579, 762, 770–71
determining, 758–65
dollar and, 579, 759–65, 772–74, 780–81,
783–85
equilibrium, 578–80, 760–63, 774
expectations and, 765
exports and, 579, 760–62
fiscal policies and, 787
fixed system of, 766
flexible, 758, 771–74, 787
float, 771
foreign borrowing and, 581–82, 762–63
imports and, 760–62
inflation and, 780–81, 783–85
international cooperation and, 771–74
management of, 766–74
monetary policy and, 767–69, 785–87
and price of goods, 678–80, 783–85
real, 764, 771–72
speculation and, 763–65
stabilizing, 771–74
supply and demand and, 759–65
trade deficit and, 577–80
trade-weighted, 577–78
volatility and, 769–71, 772
excise taxes, 383
exclusionary practices, monopolies and, 272
executive compensation, 368
exit, exiting the market, 56, 160–62
expectations:
adaptive, 825, 880–81
change in, 60, 825–28
demand curves and, 58
exchange rates and, 765
forming of, 880–81
of future consumption, 671
of inflation, 820, 824–27, 832
rational, 880–81
expenditures:
discretionary, 562, 731–36
military and civilian, 595
experimental economics, 321
export-led growth, 801
exports, 424, 678, 680
exchange rates and, 579, 760–62
high-tech, 576–77
income and, 678
net, 490, 676–80, 683–84, 780, 781–82
see also imports; international trade;
trade
externalities:
environment and, 405–18
imperfect markets and, 241, 252–54
negative, 405–18
network, 272
positive, 454
solving problem of, 416
FAA (Federal Aviation Administration), 228
facilitating practices, by oligopolies, 276
factor demand, 182–84
factors of production, 132
Fair Labor Standards Act of 1938, 231
“fair trade,” 437–39
farm programs, 93–94
FASB (Federal Accounting Standards
Board), 5–6
FDA (Food and Drug Administration),
13–14
Federal Accounting Standards Board
(FASB), 5–6
Federal Aviation Administration (FAA), 228
Federal Deposit Insurance Corporation
(FDIC), 632
federal funds interest rate, 628, 629, 630,
715–23, 737–40, 782
target of, 717, 722, 737–38, 743, 852–53
federal funds market, 628–30, 715–21
equilibrium in, 720–21
Federal Open Market Committee (FOMC),
628, 689–90, 709, 710, 715–18, 721,
736–39, 743, 845, 851–53
Federal Reserve Act of 1913, 627, 848, 850,
854, 855
Federal Reserve Bank of New York, 629,
716–17, 721, 738
Trading Desk of, 716–17, 721
Federal Reserve Banks, 626–28, 654, 716–17
Federal Reserve Board (Fed), 481, 605–6,
609, 615, 621–22, 627, 654, 691–97,
715, 716, 736–51, 782, 849–51, 855,
858
inflation and, 689–90, 700–701, 703,
708–9, 837–38, 843, 848–49
Federal Reserve System, 621–22, 624,
626–32, 715–23, 855
Federal Trade Commission (FTC), 245, 250,
300, 305, 306–7
Federal Trade Commission Act of 1914, 279,
304
fiat money, 617, 620
final outputs approach to GDP, 489–91, 493
income approach vs., 493
financial intermediaries, 612–14
financial markets, 786
financial services, banking, 205, 322–24
financial system, in modern economies,
612–26
financial terms, glossary of, 619
firms, 534–35
competitive, theory of, 155–71
as consumers, see consumers
costs of, 131–50, 156–58
and demand for labor, 181–84
displaced, 440
production decision of, 155–71
profit-maximizing, 26–29, 158–60
supply curves of, 162–63
supply decision of, 264
fiscal deficit, 549, 556–61, 574–75
fiscal policies, 695–97, 727, 729–36
Congress and, 749–50
discretionary, 731–36
exchange rates and, 787
expansionary, 732–33, 746–47
lags in, 750–51
monetary policies and, 749–51, 785–89
open market operations and, 787
recessions and, 732–33
fiscal surplus, 549, 556–61
fixed costs, 135, 161
research and development as, 460–61
flows:
capital, 568–71, 572–74, 575
circular, 534–35, 549–50, 554
and GDP measurement, 505
fluctuations, business, 638–48
full employment and, 638
in full-employment model, 643–44,
648–49
new classical views of, 844
reasons for, 643–48
unemployment and, 637–38
see also business cycles
Food and Drug Administration (FDA),
13–14
Ford, Henry, 454, 456, 459, 594, 646
foreign exchange market, 757–65, 771–74
Fortune 500, 3
four-firm concentration ratio, 271
fractional reserves, 622
fractional reserve system, 622
Freakonomics (Levitt and Dubner), 343
free-rider problem, 255
free trade, 434, 804, 807
frictional unemployment, 502, 503, 527, 822,
829
Friedman, Milton, 827–29, 846
fringe benefits, 365, 369
FTC (Federal Trade Commission), 245, 250,
300, 305, 306–7
full employment, 474–82, 503, 525–26, 533,
539–42, 605, 641–43, 649, 656
business fluctuations and, 638
inflation and, 689–90, 691, 698–701, 703,
820
Full Employment and Balanced Growth
Act of 1978, 481, 641, 842–43
A-20 ∂ INDEX