The Fed's Role in Making and Setting Monetary Policy: Part 1

How does inflation affect the economy, and how can effective monetary policy by the Federal Reserve help control inflation? With the Fisher equation and analysis of annual CPI rates during the 1970s and early 1980s, your class members will approach these questions and examine the effect that high inflation can have on individuals and businesses.

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CCSS: Adaptable

  • Handout details definition, causes, and harmful effects of rapid inflation
  • Worksheet included explaining the Fisher equation

  • The resource is heavily based on reading, and the instructor may wish to supplement with more interactive and engaging activities
Common Core