This year’s annual report examines a project the Fed is spearheading to improve the U.S. payment system. The essay is written by St. Louis Fed First Vice President David Sapenaro, who recently completed his responsibilities as the project’s interim payments strategy director.View Publication
Students learn that the loanable funds market is a virtual clearing house matching borrowers and savers. They participate in an activity to demonstrate crowding out in the loanable funds market. They use demand and supply analysis to graphically represent the results of crowding out.