Understanding monetary policy: Online tools from the Classroom Economist

Teachers know that monetary policy is one of the most important concepts for students to learn. They also know it's one of the most difficult. The fourth-quarter edition of the Classroom Economist will provide numerous resources to help improve students' comprehension of this challenging topic. These resources will include an economist's perspective on monetary policy in the video-based "Chat with an economist" as well as the lesson demonstration video featuring clips from "The Trial of Monty Terry," an award-winning classroom drama on the subject. In addition, educators can give students a sharper understanding of critical concepts with the classroom-ready PowerPoint lesson and quiz, engage their students in the lesson through interactive SMARTBoard activities, and explore links to additional lessons, resources, and publications in the Resources Guide.

Featured concepts include:

  • What exactly is monetary policy?
  • What is the Fed's role in monetary policy?
  • What's the difference between monetary and fiscal policy?
  • Who is involved in making monetary policy decisions?
  • What are the tools of monetary policy and how do they work?
  • Who is responsible for carrying out open market operations?
  • What role does the banking system play in monetary policy?
  • What effects do interest rates have on the economy?
  • Why is it important that the Fed remain independent?

Using each of the six components of the Classroom Economist series for both online professional development and as a teaching tool in the classroom allows teachers to enhance and strengthen their curriculum through technology, reaching digital-age students in new and engaging ways.

Look for new modules each quarter, including a return to economic indicators in 2012 with the Classroom Economist's module on unemployment.

October 11, 2011