These Economics W.I.R.E.D. activities recommend web links that relate to key concepts of each chapter of the textbook. For each link, there are instructions to guide you to specific information, followed by several discussion questions or exercises.
Key Concepts: Why Are Central Banks Independent?, Case Study: Trying
to Bring the Aggregate Demand Curve into Line in 2000, Money and Other Instruments
of Monetary Policy, The Exchange Rate and Monetary Policy
Federal Reserve—Selected Interest Rates
Click on Current Release to view "Selected Interest Rates" in PDF format.
- Explain how FOMC may buy or
sell bonds to achieve a "short-run" operating target Federal Funds rate.
- Describe how the Federal Funds
rate may affect the interest rates of U.S. government securities such as bonds.
- Review the current 30-year mortgage interest rate information at Interest.com.
Note that the 30-year mortgage rate is benchmarked to the 30 year U.S. government
security (bond) rate. Explain how controlling the Federal Funds rate can affect
the overall demand for money in the economy.
Review the real-time foreign
exchange "Currency Trends" information on major currency-pairs (U.S. dollar
& Euro, U.S. dollar & Japanese yen, and Euro & Swiss franc). Scroll
down the page and survey the current FXNews.
- Assess how much the U.S. dollar
has appreciated or depreciated against the Euro and Japanese yen over the
- Explain how volatile exchange
rates may negatively affect global trade and multinational businesses.
- Review the service offered by e-gold.com.
Explain why investors may be interested in holding "e-gold" in their investment