Teaching the New Tools of Monetary Policy
Resources for teaching the Fed's monetary policy tools in an ample-reserves framework.
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Video Q&A
0-15 min
The Importance of Federal Reserve Independence
OVERVIEW
In this video, Ben Bernanke, Chairman of the Board of Governors of the Federal Reserve System (2006-2014), explains how important the Fed's independence is to the health of our economy.
History shows that one of the best things you can do to create a strong stable economy is to have strong central bank which is independent of political pressures. Central banks that are not independent that are subject to short-term political pressures are going to make short-term decisions that aren't the best for the economy. If you have though the freedom from those short-term pressures, then you can make decisions based on the longer-term interest of the economy, and you're much more likely to maintain low and stable inflation; you're much more likely to maintain a healthy growing economy. There's an enormous amount of evidence that shows that countries with strong central banks that are free from short-term political pressures, get better results and help the economy be more stable, keep inflation low, and help economic growth.
Related Resources
CURRICULUM UNITS
MODULES
31-45 MIN
Making Sense of the Federal Reserve
Introduce the structure of the Federal Reserve and the basics of monetary policy.
LESSONS & ACTIVITIES
31-45 MIN
Fiscal vs Monetary Policy
Learn about fiscal and monetary policy.
INFOGRAPHICS & COMICS
Your Connection to the Economy and the Federal Reserve
Learn about how the Federal Reserve connects to your daily life.
AUDIO Q&A
Econ Lowdown Podcast Series
21 Economics audio assignments for your classroom
READING Q&A
16-30 MIN
Open for Business: Understanding the Fed's Discount Window
Learn about the Federal Reserve's discount window.
More in This Series
VIDEO Q&A
0-15 MIN
Boom Times and Bubbles: The Internet Age
Learn about the Monetary Control Act of 1980.
VIDEO Q&A
0-15 MIN
Central Banking
Learn the basics parts a central bank.
VIDEO Q&A
0-15 MIN
Creation of the Federal Reserve
Learn about banking panics, recessions, and depressions in the U.S. during the 1800s.
VIDEO Q&A
0-15 MIN
Inflation, Deflation, and Disinflation
Learn the differences between inflation, deflation, and disinflation.
VIDEO Q&A
0-15 MIN
Inflation, the Fed, and You
Learn what causes inflation.
VIDEO Q&A
0-15 MIN
Introduction to the Federal Reserve
Introduce the Fed’s three main functions.
VIDEO Q&A
0-15 MIN
Monetary Policy Fed and You
See how the Fed conducts monetary policy.
VIDEO Q&A
0-15 MIN
Money Versus Barter
Learn how money solves problems created by barter systems.
VIDEO Q&A
0-15 MIN
Price Stability
Learn the importance of price stability.
VIDEO Q&A
0-15 MIN
Stagflation in the 1970s
How did Federal Reserve Chairman Paul Volcker contain inflation, spurred economic growth, and reduced unemployment?
