The Wall Street Journal had a nice article this week on the Fed's policy meeting next week which is useful for understanding the challenges of stimulating the economy in the face of a credit crunch. Click here to view the full article on WSJ.com
The Iowa Electronic Markets sponsored by the School of Business at the University of Iowa lets you “bet” (buy futures contracts) on whether the Fed will raise or lower rates. The Federal Reserve Monetary Policy Market is “a real-money futures market. Contract payoffs are determined by monetary policy decisions of the Federal Open Market Committee regarding the federal funds target rate.” You will get a big payoff if you buy a contract with a bet that the Fed will keep rates the same or raise them. Check it out.
Edward Gamber of Lafayette College who helps to edit the Weekly Review on Macroeconomics for the Wall Street Journal has prepared some questions that might be useful in writing a Discussion Board Post about the Fed:
1.) What is the Fed expected to do to the target interest rate at its December meeting? Why?