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Teaching the New Tools of Monetary Policy

The Federal Reserve has changed the way it implements monetary policy. For example, the Fed’s new tools include interest on reserves and the overnight reverse repurchase agreement facility. But many of the recent changes are not reflected in resources for teaching monetary policy to college and high school students.

This webpage is intended to provide educators with articles and guided reading activities they may leverage as they transition to teaching the new tools of monetary policy.

Classroom Resources

The Fed’s New Monetary Policy Tools. Page One Economics®, August, 2019.

A New Frontier: Monetary Policy with Ample Reserves. Page One Economics®, May, 2019.

Temporary Open Market Operations and Large-Scale Asset Purchases. Page One Economics®, Summer, 2020.

Articles

The Fed’s “Ample Reserves” Approach to Implementing Monetary Policy (2020). Board of Governors of the Federal Reserve System. By Jane Ihrig, Zeynep Senyuz, and Gretchen Weinbach.

Fixing the “Curriculum Lag” in Economics: The New Tools the Fed is Using to Influence the Economy (2020). Social Education, National Council for the Social Studies, 84 (2), 93-99. By Jane Ihrig and Scott Wolla.

Blog Posts

Fixing the Textbook Lag with FRED: Monetary Policy in a World of Ample Reserves (Part I), Federal Reserve Bank of St. Louis The FRED Blog, June 10, 2019.

Fixing the Textbook Lag with FRED: Monetary Policy in a World of Ample Reserves (Part II), Federal Reserve Bank of St. Louis The FRED Blog, June 13, 2019.

How Does the Fed Influence Interest Rates Using Its New Tools? Federal Reserve Bank of St. Louis Open Vault blog, August 5, 2020.

Monetary policy tools today: Paying interest on all those reserves, Federal Reserve Bank of St. Louis The FRED Blog, June 18, 2020.

Search for Related Resources

Audience:   High School, College, Consumers
Language:   English
Subjects:   AP, Economics
Resource Types:   Publications, Lessons, Tutorial, Instructional Guide, Data, Working Papers/Papers
Concepts:   Federal Reserve System-functions, Federal Reserve System-structure, Monetary Policy