Related Readings:
Money and Inflation: A Functional Relationship
March 2013
Mar 5, 2013
What Is Money?
Federal Reserve Bank of Atlanta, Classroom Economist Module.
In this edition, the Classroom Economist offers a close look at money—its definition, the problem it solves,
what fiat money accomplishes, and how the Yapese used giant wheels of stone for money.
Mar 5, 2013
Feducation: Money and Inflation
By Scott Wolla. Federal Reserve Bank of St. Louis, Feducation Videocast series.
How are the money supply and inflation related? And what does the Federal Reserve have to do with this relationship? This video reviews the functions of money, features an interactive auction that demonstrates the relationship between the money supply and inflation, then utilizes a simple equation to show how changes in the money supply affect the economy. The video also describes how the Fed uses monetary policy to achieve its dual mandate of maximum employment and price stability.
