Money and Inflation: A Functional Relationship (Page One Economics Classroom Edition)
Classroom Edition (.pdf)
They say that “money makes the world go round.” Just imagine a world without money as our method of payment for everyday transactions. Without money, we would all need to barter for necessary goods and services. For example, suppose an accountant needs to have her car fixed. Under a barter system, she would have to find someone who needed some tax advice in exchange for car repairs. The search to find a barter partner is time consuming and wasteful. Money solves this problem and many others. Read more about the three main functions of money and the damaging effects of too much inflation on these functions in the March 2013 Page One Economics Newsletter.
Go to the Page One Economics web site.
Keep your students in the know on timely economic issues with the new Page One Economics Newsletter Classroom Edition. The Page One Economics newsletter provides a simple, short overview of a current economic event. The Teacher’s Guide includes student questions and a teacher answer key, plus additional resources and lesson ideas for classroom, extra credit, or make-up assignments. You can subscribe via RSS feed.
Graphs compliments of FRED®.
Tags: 9-12, AP, Barter, College, Data, Deflation, Dual Mandate, Economics, English, Federal Reserve System, Functions of Money, General Audience/Consumers, Inflation, Inflation Rate, Lessons, Library, Money, Newsletter, Page One Classroom, Price Stability