Week 10 — Readings & Resources

Your primary reading is Chapter 10 (in this module). Everything below is the optional, go-deeper layer — pick what helps, skip the rest.

How to use this page

This page has 10 items (4 readings and 6 videos). Allow 51–64 minutes for everything. Each group points back to the matching chapter section and class-session segment, so use the full menu when you want more practice, or take the quick path below.

Every video here has captions: turn them on with the CC button in the player. The chapter covers the same ideas in text.

Pick-one quick path (17–22 min total)

• The Money Market - How Monetary Policy Works (OMOs, Reserve Requirements, Discount Rate) — EconplusDal
• The Fed Explained: Who We Are — Federal Reserve Board
• How the Fed Implements Monetary Policy with Its Tools — St. Louis Fed

① Who runs the Fed, and what is it told to aim for?

Chapter 10, Section “Meet the Federal Reserve: who runs monetary policy” · Session 1, Segment 2, “The Fed's structure and goals” · Remember: the Board of Governors, the regional Reserve Banks, and the FOMC make up the Fed, and its two named goals are maximum employment and stable prices.

• The Fed Explained: Who We Are — Federal Reserve Board — the Fed's own description of its three key parts; read the sections on the three entities, the regional operating arms, and the committee that sets policy, and match each one to the chapter's three parts. (reading, 6–9 min)
• What is the Fed? — Federal Reserve — a short animated overview from the Fed itself of what a central bank does and how its parts fit together; as you watch, say which part makes the policy decisions. Use it while completing the Week-10 module overview. (video, 3 min) (captions: creator)
• Monetary Policy, part 1 of 4: The Fed and the Dual Mandate — Federal Reserve Bank of St. Louis — a brief classroom video on the two goals of the Fed's dual mandate and why they carry that name; pause after each goal and name the Week 3 measure that tracks it. (video, 4 min) (captions: automatic)

② Four tools, one direction each

Chapter 10, Section “Sort the other three tools by direction” · Session 1, Segment 4, “The Fed's policy tools” · Remember: buying bonds or cutting the discount rate pushes the money supply up, and a higher reserve requirement or higher interest on reserves pushes it down.

• U.S. Monetary Policy: An Introduction, Part 1 — San Francisco Fed — a question-and-answer primer on how the Fed is organized and on the classic tools, open-market operations and the discount rate; it was written long before the ample-reserves system, so read it for the mechanism and skip any rate it quotes. This builds on Week 9's work with how a monetary base becomes a larger money supply. (reading, 10–14 min)
• How the Fed Implements Monetary Policy with Its Tools — St. Louis Fed — a short plain-English page on the tools the Fed leans on now, with interest on reserve balances first; read the four tool sections and note which one the page calls the primary tool. (reading, 4–6 min)
• Monetary Policy, part 2 of 4: Two Important Interest Rates in Monetary Policy Implementation — Federal Reserve Bank of St. Louis — a brief video on the rates the Fed administers and how they steer the federal funds rate; watch for why a bank will not lend for less than the Fed pays it on reserves. (video, 3 min) (captions: automatic)
• New Monetary Policy Explained in 2 Minutes- Macroeconomics — Jacob Clifford — a quick whiteboard summary of how policy works when banks hold plenty of reserves; watch it after the chapter's honesty note on the ample-reserves system. (video, 3 min) (captions: automatic)

③ Reading the money market

Chapter 10, Section “Build the money market: why money demand slopes down” · Session 1, Segment 6, “The money market” · Remember: holding money gives up a bond's interest, so money demand slopes down, and the vertical money supply sets the rate where the two cross.

• The Money Market - How Monetary Policy Works (OMOs, Reserve Requirements, Discount Rate) — EconplusDal — a clear diagram walk-through of money demand, a vertical money supply, and how each tool shifts money supply and moves the interest rate; draw the graph alongside and check each shift against the chapter's tool table. (video, 7 min) (captions: automatic)
• The Money Market (1 of 2)- Macro Topic 4.5 — Jacob Clifford — a fast lesson on why money demand slopes down and money supply stands vertical; notice when the video moves along money demand and when it shifts the line. Stop here before the rate's effect on investment and output; next week takes that up. (video, 3 min) (captions: automatic)

Optional one-stop reference (free online reference)

• Monetary Policy: What Are Its Goals? How Does It Work? — Federal Reserve Board — the Fed's own explainer of its goals and of how it steers the federal funds rate; read for the three goals and the federal funds rate, and skip the footnotes. (reading, 8–12 min)

Heads-up (links rot): these point to outside sites that occasionally move or rename pages. If a link ever fails, tell your instructor and use the reference above in the meantime.

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