19.1 How Banks Work
Discuss what needs to be done to get a new bank up and running
Describe how the banking system can expand the money supply
19.2 Monetary Policy in the Short Run
Describe the slope of the money demand curve
Explain how changes in the money supply affect interest rates and real GDP in the Short Run
Discuss the federal funds rate and why the Fed uses this rate to pursue monetary policy goals
Federal Reserve Chairman Powell: talking about adjusting to inflation
19.3 Monetary Policy in the Long Run
Understand why changes in the money supply affect only prices in the long run, not real GDP
Examine the historical link between money supply growth and inflation
Understand why political independence of central banks results in lower inflation
Describe how the Fed responded to the Great Recession of 2008-2009