This video teaches the concepts of Monetary Policy and the Federal Reserve. Monetary policy involves regulating the money supply, banks and the overall financial system. Monetary policy is conducted by a central bank, which in the United States is called the Federal Reserve.

Key Concepts

Aggregate Demand (AD), Aggregate Supply (AS), Inflation, Money Supply, Monetary Policy, Money, Federal Reserve


One is Silver and the Other's Gold

Students learn about the money supply and that it can affect the value of money. Students investigate this in the 1896 presidential election (Bryan vs. McKinley, Free Silver vs. Gold Standard) and examine a political cartoon that depicts how some people felt about this issue. Students answe...

Grades 6-8, 9-12

Fed Orders Interest Rate Cut

On October 15, 1998 Alan Greenspan and the Board of Governors, in a surprise move ordered short-term interest rates cut by 0.25%. What prompted the Fed to take this action? What impact will the rate change have on the economy? Analyze the articles below to examine the linkages between acti...

Grades 9-12

Phillips Curve

This lesson explores the relationship of unemployment to inflation in the 1960s and after. Students will discover the short-run trade-off between inflation and unemployment when unemployment is less than its natural rate. Students will learn how wage setters formed adaptive expectations about fu...

Grades 9-12

Who Is Janet Yellen?

This lesson introduces students to the Chair of the Federal Reserve System, Janet Yellen. It describes briefly her involvement within the Federal Reserve.

Grades 9-12

The Family Vacation

Students will take a surprise trip around the world. As they travel, they will use clues to discover where they are going. They will then figure out how much money they have spent in U.S. dollars, using exchange rates.

Grades 6-8, 9-12