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.
The Fed’s New Monetary Policy Tools. Page One Economics®, August, 2020 (revised August 2021).
The Fed's New Monetary Policy Tools, Econ Lowdown Online Module.
How the Federal Reserve Implements Monetary Policy, Lecture Guide.
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.
Timeline: Federal Reserve Monetary Policy, FRASER website.
Making Technical Adjustments: The Difference Between “Conducting” and “Implementing” Monetary Policy, Economic Synopses, August 2021.
Teaching the Linkage Between Banks and the Fed: R.I.P. Money Multiplier, Page One Economics, September 2021.
Closing the Monetary Policy Curriculum Gap: A Primer for Educators Making the Transition to Teaching the Fed's Ample-Reserves Framework (2020). FEDS Notes, Board of Governors of the Federal Reserve System. By Jane Ihrig and Scott Wolla.
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. This article was published in Social Education (March-April 2020). Social Education is the official journal of the National Council for the Social Studies (www.socialstudies.org). By Jane Ihrig and Scott Wolla.
Let’s close the gap: Revising Teaching Materials to Reflect How the Federal Reserve Implements Monetary Policy (2020). Finance and Economics Discussion Series, Board of Governors of the Federal Reserve System. By Jane Ihrig and Scott Wolla.
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.
Visualizing the Fed’s new monetary policy tools, Federal Reserve Bank of St. Louis The FRED Blog, February 22, 2021.
Webinars and Recorded Presentations
Teaching the New Tools of Monetary Policy (webinar presentation)
Teaching about New Monetary Policy Tools, Timely Topics Podcast Series, August 2021.