The 3-equation model by Carlin and Soskice (2014) introduces the current consensus in modern monetary macroeconomics to undergraduates through a static framework in which adjustment occurs via the monetary policy rule of an inflation-targeting central bank. In this article, the authors present a dynamic extension of this model and an Excel-based…

Over the course of one semester, six empirical assignments that utilize FRED are used to introduce students of money and banking courses to the economic analysis required for the conduct of monetary policy. The first five assignments cover the following topics: inflation, bonds and stocks, monetary aggregates, the Taylor rule, and employment.…

The Federal Reserve System (the Fed) is one of the most important financial institutions in the world. As the central bank of the United States, it influences the domestic money supply, credit, and interest rates with the goal of achieving stable prices and full employment for the world's largest economy. It provides a variety of services to…

The Federal Reserve System is the central bank of the United States. The system includes 12 Federal Reserve Banks (and their associated branches) located throughout the country, with oversight by the Board of Governors in Washington, D.C. The diverse structure is designed to ensure that the interests of Main Street are represented along with those…

The global financial system appears to be heading for a major financial crisis. This crisis is being driven by a growing global debt. This crisis is not limited to nations that are heavily in debt such as Greece, Spain, Portugal, Ireland, Italy or Cyprus but to such others as the United States. While there has been a great deal of emphasis on…

The lessons learned from the recent financial crisis should significantly reshape the economics profession's thinking, including, importantly, what we teach our students. Five such lessons are that we live in a monetary economy and therefore aggregate demand and policies that affect aggregate demand are determinants of real economic outcomes; that…

Debates over how to promote a healthy economy are pervasive once more, after decades when it seemed such debates had been put to rest. The market meltdown of 2008 ended a long string of years in which monetary policy reigned supreme. Monetary policy is the regulation of money and the banking system to influence economic variables. Its adherents,…

Examined are the quantity theory of money and the recent application of monetary policy in Japan, the United Kingdom, and the United States. In all three countries, the reduction of monetary growth has reduced inflation. (Author/RM)

Discussed is how the United States' administration or lack of administration of the overseas dollars can create tremendous problems for the rest of the world. An overly strong dollar can be a corrosive influence on economic activities and employment globally. (RM)

The 1983 federal fiscal crisis has been created by a decade of excessive monetarist policy. Why so costly and destructive a policy has commanded the allegiance of economists and governments throughout the world is discussed. (RM)

Economists and historians have struggled for almost 80 years to account for the American Great Depression, which began in 1929 and lasted until the early years of World War II. In this article, the authors discuss three major schools of thought on the causes of the Great Depression and the long failure of the American economy to return to full…

Hypothesizes that: (1) there is much public distrust of business profit-making due to lack of economic education and misunderstanding of business profits; (2) social scientists should study such attitudes and investigate profits; and (3) conflicts between profit-making and government intervention for social goals are inevitable and must be better…

Discusses economic achievement, economic constraints, and economic policy issues relevant to Western Europe. Constraints include decreases in resources and energy, a slow-down in the baby boom, and public resistance to pollution-causing technology. Achievements include high standards of living, positive trade balances, and international…

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)…

A survey of United States colleges and universities that enroll the largest numbers of students from Indonesia, Malaysia, South Korea, and Thailand, which have experienced currency devaluations and economic uncertainty, found a less than 10% drop in those enrollments, a much lower rate than anticipated. Institutions have taken steps to ease the…