This article represents the third in a "ghost story" series by the same authors. Readers may recall that Mr. Bernanke was "visited" by the ghosts of Adam Smith and John Maynard Keynes in the March/April 2010 issue of "Social Education" as these two famous economists debated the economic recovery (see EJ878912). Mr.…

Data and primary source documents are important for understanding past and current events. The Federal Reserve Bank of St. Louis has committed itself to the collection and illumination of economic data and historical information for classroom teachers and researchers. The Federal Reserve Bank of St. Louis provides a number of services--including…

Reports on a study of 43 Italian fifth-graders about their understanding of the functions of banks and the role of monetary interest in banking before and after a lesson on banking. Finds that most children could speak correctly about both deposit and loan interest and their relative amounts after the lesson. (CFR)

The article profiles Nobel Peace Laureate Muhammad Yunus, founder of Grameen Bank (an independent financial institution in Bangladesh), as well as an economics professor at the University of Chittagong. In his birthplace of Bangladesh, 49.8 percent of people exist below the poverty line, and 73.2 percent of the women are categorized as…

The World Bank, operating in a complex, diverse, and changing environment, provides financial advice and support to developing nations that range from macro-economic management to project design. Major changes in management systems have occurred during the 1980s and are reflected in the bank's assistance in: (1) analytical support of policy…

Discusses teaching about the financial market as it relates to family finances, savings, and business. Explains ways of making these relationships clear to students through diagrams, activities, games, and role playing. Suggests questions to focus on that highlight the relationship between the rate of return and the risks involved. (DK)

The Federal Reserve was created in 1913 in response to recurring banking panics in the United States. Its mission has since expanded into fostering a healthy economy. The Federal Reserve consists of three parts: (1) the Board of Governors; (2) Reserve Banks; and (3) the Federal Open Market Committee (FOMC). The Board of Governors is the federal…

Presents a teaching model that is consistent with the traditional approach to demonstrating the expansion and contraction of the money supply. Suggests that the model provides a simple and convenient visual image of changes in the monetary system. Describes the model as juxtaposing the behavior of the moneyholding public with that of the…

The purpose of this article is to: (1) Examine the historical development of the Federal Reserve System; (2) Provide background on Ben Bernanke, the new Fed chairman; (3) Explain the basic tools of monetary policy used by the Fed; (4) Examine the causes of the Great Depression, a topic of special interest to Bernanke; and (5) Provide some key…

Provides a graphical framework for presenting interactions among current account flows, capital account flows, and exchange rates. Suggests that the two type of flows must be considered separately in discussions of foreign exchange equilibrium and balance of payments flows. Supplies sample graphs and instructions for applying the framework to real…

Describes graphical techniques to help explain the multiple creation of deposits that accompany lending in a fractional reserve banking system. Presents a model that emphasizes the banking system, the interaction of total permitted, required, and excess reserves and deposits. Argues that the approach simplifies information to examining a slope…

This is one of a series of essays adapted from articles in "On Reserve," a newsletter for economic educators published by the Federal Reserve Bank of Chicago. This pamphlet explains how public debt incurred by the federal government may not be necessarily bad from an economic perspective. The sections of the pamphlet include: (1)…

Explains the use of forwards, futures, swaps, and options in international currency trading. Argues that pricing options are based on the same basic principles as pricing other financial instruments. Concludes that, although financial markets have developed several new products, hedging and speculation involve similar processes. (CFR)

This issue focuses on the theme of economics, and presents educational resources for teaching basics to children. Web sites, CD-ROMs and software, videos, books, and additional resources, as well as activities which focus on economics are described. Includes short features on related topics, and the subtopics of trade, money and banking, and…

This handbook provides a brief overview of bank and bank holding company community development corporations (CDCs), the types of activities for which they can be used, the legal requirements in establishing such an entity, and how they are organized and operated. Case studies, including studies of the Shorebank Corporation of Chicago, the First…