Week 11 · Readings & resources

Week 11 — Readings & Resources

Principles of Macroeconomics Free sample edition

Your primary reading is Chapter 11 (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 58–74 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 (18–21 min total)

① How does a bond trade reach spending?

Chapter 11, Section “Name the transmission mechanism: five links, said in order” · Session 1, Segment 2, “Five links in order” · Remember: the money supply moves the interest rate, the rate moves investment, the multiplier scales it, and aggregate demand shifts.

How does the Federal Reserve affect inflation and employment? — Federal Reserve Board — the central bank's own short answer on how its policy reaches jobs and prices through borrowing costs; as you read, match each step it describes to one of the five links, and notice where it says the effects are not direct or immediate. (reading, 5–8 min)
Macro: Unit 4.4 -- The Effects of Monetary Policy — You Will Love Economics — a classroom-style walk from a recessionary or inflationary gap to the policy that answers it, through the money market and on to aggregate demand; pause at each graph and name the curve, the direction, and where the price level and output go. (video, 7 min) (captions: automatic)
Monetary Policy Transmission Mechanism — EconplusDal — a whiteboard tour of the routes a rate change travels through the economy, told for a British audience; in this video "MPC" names the Bank of England's rate-setting committee, not the marginal propensity to consume, so keep the two apart as you watch. (video, 6 min) (captions: automatic)

② Which curve moves, and which multiplier?

Chapter 11, Section “Read the last link on the AD–AS diagram” · Session 1, Segment 5, “Reading the AD shift” · Remember: a Fed bond purchase shifts aggregate demand right, so the price level and real output rise together.

Monetary Policy Graphs (1 of 2) - Macro 4.6 — Jacob Clifford — a fast sketch that links the money market graph to the aggregate demand graph; draw along, and check that your money supply line and your aggregate demand curve move in the same direction each time. (video, 3 min) (captions: automatic)
Fiscal & Monetary Policy - Macro Topic 5.1 — Jacob Clifford — a short side-by-side of the legislature's tools and the central bank's tools, both read on the same aggregate demand diagram; watch for the point where each lever reaches spending. This builds on Week 7's work with fiscal policy and the spending multiplier. (video, 4 min) (captions: automatic)

③ Why the chain is slow, and how often to use it

Chapter 11, Section “Weigh fine-tuning against rules” · Session 2, Segment 9, “Fine-tuning versus rules” · Remember: both sides use the same chain; they differ on how long the lags run and on how to weigh jobs now against stability later.

U.S. Monetary Policy: An Introduction, Part 3 — Federal Reserve Bank of San Francisco — a question-and-answer letter on how a policy move reaches spending and why its effects arrive late; read the section on how rate changes affect the economy and the three closing sections on lags. Stop here before the Phillips curve; next week takes that up. (reading, 10–15 min)
On Long and Variable Lags in Monetary Policy — Federal Reserve Bank of Atlanta — a regional central bank's message on why firms and households take time to notice and respond to a policy change; read the paragraphs on why the effects take time, and treat the rest as one official's view at one moment, not a verdict. Use it while completing the Week-11 module overview. (reading, 6–10 min)
Policy Lags — i_run_econ — a short talk on the timing problems policymakers face when they try to fine-tune the economy; as you watch, sort each delay into the inside lag or the outside lag. (video, 4 min) (captions: automatic)
Keynesians vs Monetarists — EnhanceTuition — a whiteboard comparison of two schools' views of how the economy works and how actively policy should respond; label each claim as positive or normative, and set it beside the chapter's two cases. (video, 5 min) (captions: creator)

Optional one-stop reference (free online reference)

Monetary Policy, Concise Encyclopedia of Economics — Econlib — an encyclopedia entry on what central banks aim for and how their tools reach spending; read the strategies section and the section on fiscal policy, and skip the operating-procedure detail. It is written from one side of the rules debate, so read it beside the chapter's two cases. (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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