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What Is "Rent Seeking?" How Does It Apply to Restricting

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Essay

What is "rent seeking?" How does it apply to restricting imports?


Definitions:

Legal Reserve Requirement

The minimum amount of reserves that banks are required to hold against deposits, as mandated by central banks.

Excess Reserves

Funds that banks hold over and above the required minimum by the central bank to cover depositor withdrawals.

Open Market Operations

Actions undertaken by a central bank, such as buying or selling government securities, to control the money supply and interest rates.

Federal Reserve District Banks

The 12 regional banks that make up the Federal Reserve System of the United States, each serving a specific geographic area.

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