Money Connection—Unit 3
This lesson focuses on the impact of too much money or too little money flowing in the economy in terms of jobs, prices, and production of goods and services. A simulation is used to demonstrate the impact of inflation on the economy.
Money Connection Video
The Money Connection is a lively, two-part video (approximately 17 minutes) designed to introduce fourth through sixth grade audiences to the Federal Reserve System. The fast-paced, news show format combines historical photographs and live-action footage with interviews and animation sequences for a close up look at the history and important responsibilities and functions of the Federal Reserve.
The "What is a dollar worth?" calculator allows you to compare prices for goods or services from different periods of time. For example, you can compare the price you paid for a dozen eggs in 1972 with the price you paid last week.
Time Value of Money Online Learning Module
This online learning module helps students learn about the time value of money, opportunity costs, interest and inflation. The module also focuses on mathematical components and calculations of the related time value formulas.
Consumer Price Index Video
This Drawing Board video explains the Median Consumer Price Index (CPI) and how it is used to gauge inflation.
Other Inflation Teaching Ideas
Find out what methods other educators in the Southeast have used to teach concepts related to inflation.
The Fed Today—Lesson Four: The Fed's Role in Making and Setting Monetary Policy
This lesson focuses on price stability and inflation. Students discuss how to define inflation and analyze the relationship between the money supply and the price level using the Fisher Equation. Students then examine the harmful effects of inflation on the economy. Finally, small groups of students determine how business and consumer behavior changed during the 1970s when inflation had a negative impact on the nation's economy.
A Lesson to Accompany "Benjamin Franklin and the Birth of a Paper Money Economy"
In this lesson, students learn about the role of money in the colonial economy by participating in a trading activity in which they observe the effects of too little money on trade within a colony. In the final activity, students learn how too much money can lead to inflation. Related essay
Advanced High School to College
The Economy: Crisis and Response—The Road Ahead
As the economy moves toward recovery, the Fed will remain active in its response, including unwinding certain policies as conditions warrant. This website examines the economic outlook, why inflation is a topic of focus, and the changes in regulation needed to strengthen the financial markets.
The Inflation Project
Tracking inflation and its effects is a vital component of the Federal Reserve's monetary policy. The Inflation Project regularly compiles links to data releases, reports, research, and international inflation updates.
The Summary of Commentary on Current Economic Conditions, commonly known as the Beige Book, gathers anecdotal information on current economic conditions in each Federal Reserve District through reports from Bank and Branch directors and interviews with key business contacts, economists, market experts, and other sources. The Beige Book summarizes this information by District and sector.