Closing the Gap: Teaching the New Tools of Monetary Policy

The way monetary policy is implemented has changed. The Fed moved from a limited reserves regime, where reserves in the banking system are scarce, to an ample reserves regime, where reserves are ample or abundant in 2008.

However, those changes have not been reflected in teaching materials or practice. In 2019 I wrote the first article intended for educators that explained the ample reserves approach to monetary policy. My reviewer for that article was Jane Ihrig, an economist and senior advisor at the Federal Reserve Board of Governors. Together we came up with a strategic approach to changing the way this content was taught.

The Audience

High School Teachers (AP and non-AP)
College Professors

The Approach:

Content Knowledge and Curriculum

Provide professional development and articles to inform and educate instructors about the change.
Provide classroom-ready materials to support instruction.

Academic Journals

Let’s close the gap: Updating the Textbook Treatment of Monetary Policy (May 2022). The Journal of Economic Education, 53(3), 232–249. By Jane Ihrig and Scott Wolla.

Closing the Curriculum Gap by Updating Content Standards and Guidelines for Teaching Monetary Policy (2022), The American Economist, 67(2), 183-194. By Jane Ihrig and Scott Wolla.

How are Banks and the Fed Linked? Teaching Key Concepts Today (2022). Review of Political Economy, 35(2), 555–571. By Jane Ihrig, Gretchen Weinbach, and Scott Wolla.

Teaching Resources (Articles)