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Ample Reserves, Monetary Policy, and Inflationary Expectations

Today were are beginning our lessons on the new Ample Reserves curricula that was added to AP Macro this year. Coincidentally, we are also seeing it in action with the current increases in the Federal Reserve's administered interest rates.
This article from the New York Times highlights the current efforts of the Fed to tackle persistent inflation as well as how they are using administered rates to do so. Well worth the read for students!

Avoiding full cost of Inflation

I alluded to this link in several classes this week, but this graphic by the New York Times illustrates the idea that people do not often pay the full measure of inflation, but may avoid some cost increases through their consumption habits/choices.

Inflation, Monetary Policy, and Interest Rates around the World

How are countries around the world responding to inflation? Many central banks are raising interest rates to slow down inflation. Read all about it here and we'll talk about in Macro!

Calculate Your Own Inflation Rate

Curious how inflation affects you personally? This helpful graphic from the NYT can help you figure it out. We will be talking about inflation and purchasing power in Macro so check it out!

Economics of Wolves

Listened to an interesting broadcast on NPR and the show talked about the economics of having wolves in an area to control deer, limit deer-to-vehicle collisions, and create economic benefits to the community. It makes for a good study break listen while not totally leaving the realm of economics

What are International Sanctions?

Given the possibility of sanctions being used in the ongoing tensions with Russia and our coverage of trade, exchange, and banking; it seems appropriate that we understand what sanctions are and what they do as well as their use in the current geopolitical system. Here is a very direct explanation of sanctions from the Council on Foreign Relations. 

If the economy is growing, why don't I see it?

A look by the NYT about how despite the economic growth that is occurring, most Americans feel uncertain about the economic future. Does feature some conversation about inflation, real/nominal GDP, and consumer confidence.

Persistent Inflation and the Consumer Price Index

We talk about the Consumer Price Index in Macro. Representing a broad swath of goods the consumers purchase, an increase in it means that consumers are facing higher prices for goods and services. If that happens, people pay more for the same goods and the dollar doesn't go as far as it once did (inflation). 

"The Great Resignation" and the Ongoing Labor shortage

Here is a great article by the New York Times that covers a lot of ground from inflation and rising prices, to the labor shortage, to current labor economics. A very interesting and worthwhile read that covers several topics we discuss in Macroeconomics.