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Economics instruction and the brave new world of monetary policy

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Abstract

Economics education faces a challenge in keeping up with the changes that have swept through monetary policy in recent decades. Many central banking innovations, such as interest on reserves and large-scale asset purchases, aren't adequately treated in standard textbooks. The letter is adapted from a presentation made by the president and CEO of the Federal Reserve Bank of San Francisco to the AEA National Conference on Teaching Economics and Research in Economic Education in San Francisco on June 1, 2011.

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  • John C. Williams, 2011. "Economics instruction and the brave new world of monetary policy," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue june6.
    • Handle: RePEc:fip:fedfel:y:2011:i:june6:n:2011-17
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    1. Hess Chung & Jean‐Philippe Laforte & David Reifschneider & John C. Williams, 2012. "Have We Underestimated the Likelihood and Severity of Zero Lower Bound Events?," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 44(s1), pages 47-82, February.
    2. Hess T. Chung & Jean-Philippe Laforte & David L. Reifschneider & John C. Williams, 2011. "Estimating the macroeconomic effects of the Fed’s asset purchases," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue jan31.
    3. Duca, John V., 1995. "Should bond funds be added to M2?," Journal of Banking & Finance, Elsevier, vol. 19(1), pages 131-152, April.
    4. Stephen M. Goldfeld, 1976. "The Case of the Missing Money," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 7(3), pages 683-740.
    5. Antoine Martin & James J. McAndrews & David R. Skeie, 2011. "A note on bank lending in times of large bank reserves," Staff Reports 497, Federal Reserve Bank of New York.
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    Cited by:

    1. Tatiana Damjanovic & Vladislav Damjanovic & Charles Nolan, 2016. "Risk Management and the Money Multiplier," CEGAP Working Papers 2016_03, Durham University Business School.
    2. Tatiana Damjanovic & Vladislav Damjanovic & Charles Nolan, 2017. "Liquidity Risk, Credit Risk and the Money Multiplier," Working Papers 2017_09, Business School - Economics, University of Glasgow.
    3. Jingyuan Fu & Meng Sun & Minhong Wang, 2022. "Simulation-Assisted Learning about a Complex Economic System: Impact on Low- and High-Achieving Students," Sustainability, MDPI, vol. 14(10), pages 1-17, May.
    4. Seghezza, Elena & Morelli, Pierluigi, 2020. "Why the money multiplier has remained persistently so low in the post-crisis United States?," Economic Modelling, Elsevier, vol. 92(C), pages 309-317.

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