Inflation, unemployment, recession, economic growth—these economic concepts affect people in very real ways. In this module containing three interactive, thought-provoking lessons, you will learn about monetary policy, the avenue by which the Federal Reserve System attempts to influence the economy. Graphs compliments of FRED.
Note: The Federal Reserve’s policy tools have changed. Prior to 2008, the Fed used open market operations as its primary tool for adjusting the federal funds rate. Today, the Fed uses interest on reserves as its primary tool. This module largely reflects the tools the Federal Reserve used to implement monetary policy before 2008. We will keep these resources available through July 2022 to accommodate those using a curriculum tied to the old tools.
To ensure your students are learning about the Fed’s current tools, use The Fed’s New Monetary Policy Tools Online Module for Teachers and Students.
And be sure to check out our Teaching the New Tools of Monetary Policy webpage dedicated to helping you make the transition to teaching the new tools of monetary policy.