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Home > Education Resources > feducation-money-and-inflation

Economic Education

Feducation: Money and Inflation

Feducation How are the money supply and inflation related? And what does the Federal Reserve have to do with this relationship? This video reviews the functions of money, features an interactive auction that demonstrates the relationship between the money supply and inflation, then utilizes a simple equation to show how changes in the money supply affect the economy. The video also describes how the Fed uses monetary policy to achieve its dual mandate of maximum employment and price stability.


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