The Fed’s Non-quant:Beige Book

November 16, 2007Toby Madden

Federal Reserve Bank of Minneapolis

Disclaimer

The views expressed here are the presenter's and not necessarily those of the Federal Reserve Bank of Minneapolis or the Federal Reserve System.

Fed’s Duties• Payments System

• Safety and Soundness

• Monetary Policy

Additional Resources

•Region Magazine

•fedgazette

•Minneapolisfed.org

•toby.madden@mpls.frb.org

Beige Book•What

•When

•Who

•How

•Why

WhatSummary of Commentary on

Current Economic Conditions by Federal Reserve District

•Anecdotal

•Recent

•Economic Sector

•By District

When

•8x per year

•Released ~ 2 weeks b4 FOMC

•Cut off 9 days b4 release

•Compiled for 2 weeks

Who

•Each district’s economists

•Part of 3 peoples jobs in Mpls

How

•Fed Surveys/Polls

•News

•Advisory Councils/BOD

•Contacts

• Associations

Why

•Timely

•Stats < turning points

•Flexible

Who Wants to Win Toby’s Money?

To tighten the money supply, the Federal Reserve a.decreases the reserve ratio. b.purchases government securities in the open market. c.sells government securities in the open market. d.decreases the discount rate.

To tighten the money supply, the Federal Reserve b.purchases government securities in the open market. c.sells government securities in the open market.

To tighten the money supply, the Federal Reserve c.sells government securities in the open market.

A reduction in aggregate demand is likely to result in: a.inflation. b.recession. c.a sudden spurt of growth in production. d.increased consumption of crushed rock for concrete foundations.

A reduction in aggregate demand is likely to result in: a.inflation. b.recession.

A reduction in aggregate demand is likely to result in:

b.recession.

What is the cost of a “Free Lunch”?

What is the cost of a “Free Lunch”?

Opportunity Cost

What rank did Minnesota have for high school attainment in

2006?

• A - 1st

• B - 5th

• C - 10th• D - 20th

What rank did Minnesota have for high school attainment in

2006?

• A - 1st

• B - 5th

What rank did Minnesota have for high school attainment in

2006?

• A - 1st

What rank did Minnesota have for total high school spending per

student in 2004?

• A - 6th

• B - 11th

• C - 16th• D – 21st

What rank did Minnesota have for total high school spending per

student in 2004?

• C - 16th• D – 21st

What rank did Minnesota have for total high school spending per

student in 2004?

• D – 21st

What was the 2006 population in Minnesota (according to the U.S.

Census website)?

• A – 5,167,101

• B – 5,476,892

• C – 5,811,739

• D – 6,032,903

What was the 2006 population in Minnesota (according to the U.S.

Census website)?

• A – 5,167,101

• C – 5,811,739

What was the 2006 population in Minnesota (according to the U.S.

Census website)?

• A – 5,167,101

QUESTIONS

What are the expected changes in your company’s employment in 2008?

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