Material Detail

Class is divided into 3 groups; group 1 represent the Fed; group 2 represents financial institutions; group 3 represents the borrowers (spending and investing). Groups are provided with state of the economy (real or hypothetical). Group 1 conducts research then designs and implements appropriate monetary policy. The other two groups research and predict their reactions to Fed policy. All three groups are researching and gathering information on policies, expectations, and reactions of the other groups. Not only group members interact, but also groups interact to assess their activities, findings, and learning. Written reports can be done by each group; or perhaps a written report can be done by each student.At the completion of this activity, students should be able to understand how monetary policy works and the potential impact of monetary policy on the economy.

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