Monetary Policy: Part Art, Part Science
Monetary Policy: Part Art, Part Science is a free video-based series that accompanies the Monetary policy starts in your own back yard curriculum. The video series describes how interest rates are determined as part of the broader Monetary Policy curriculum. The full curriculum illustrates how economic forecasting, combined with "grassroots" economic intelligence gathered from the boards of directors of the twelve Reserve Banks, contributes to the Federal Open Market Committee's formulation of national monetary policy.
This chapter introduces viewers to the concept of monetary policy and the effects of factors including interest rates, inflation, and prices. The relevance and the reason for examining monetary policy are established by viewing the impact that monetary policy has on day-to-day life.
In this chapter, viewers become acquainted with economic research at the grassroots level. Viewers are introduced to some members of the Atlanta Fed's board of directors, who describe how their observations of their industries influence how they perceive the economy. The directors then convene to pass their observations on to the Atlanta Fed's president.
Finally, viewers learn that economic research is data-driven. They watch some of the Atlanta Fed's economists discuss how they use statistical models and sophisticated tools to evaluate economic activity. The economists are shown presenting the results of their research to the president of the Atlanta Fed, who uses the information from the economists and the directors to prepare for his participation in a discussion of monetary policy in Washington, D.C.
Full curriculum is available for upper middle and high school students.
Video series is also available on DVD by order.