Teaching the Linkage Between Banks and the Fed: R.I.P. Money Multiplier

The money multiplier has been a standard concept in introductory economics classes for decades, but changes in the way the Fed implements monetary policy has made the model obsolete. This issue provides information about the linkages between the Fed and the banking system and provides teaching suggestions.

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Education Level: 9-12 College Non-educators
Subjects: AP Economics Economics
Concepts: Banks Money Federal Reserve System-functions Monetary Policy
Resource Types: Publication Lesson
Languages: English