Presents a teaching model that is consistent with the traditional approach to demonstrating the expansion and contraction of the money supply. Suggests that the model provides a simple and convenient visual image of changes in the monetary system. Describes the model as juxtaposing the behavior of the moneyholding public with that of the…

The efforts of Sight Savers, a service program of the Royal Commonwealth for the Blind, to stem the outward flow of hard currency from developing countries are described. Sight Savers furthers program sustainability by emphasizing local manpower development, selecting equipment that requires less and cheaper maintenance, and using local currency…

From the earliest times when commodities such as tobacco and beaver pelts were used as money, to the present when credit and debit cards are commonplace, money has played a central role in the U.S. experience. This booklet provides an historical overview of the concept of money as it has evolved in the United States. The booklet is divided into…

Provides a graphical framework for presenting interactions among current account flows, capital account flows, and exchange rates. Suggests that the two type of flows must be considered separately in discussions of foreign exchange equilibrium and balance of payments flows. Supplies sample graphs and instructions for applying the framework to real…

Describes graphical techniques to help explain the multiple creation of deposits that accompany lending in a fractional reserve banking system. Presents a model that emphasizes the banking system, the interaction of total permitted, required, and excess reserves and deposits. Argues that the approach simplifies information to examining a slope…

Reviews progress toward economic integration and monetary union within the European Economic Community. Maintains that Germany has the greatest influence on the system because of its strong currency and monetary policies. Concludes that a "two-speed" course toward economic union may be the only practical path. (CFR)

Discusses how the decimal monetary system was created, considering colonial currency, continental currency, money under the Articles of Confederation, and money under the Constitution. Also discusses how money is taught in arithmetic textbooks during these times. (JN)

Many generalizations sound simple enough--for example, "strong is good, weak is bad"--but they can be confusing when talking about money. This booklet explores how the U.S. dollar and foreign currencies affect each other and how their interaction affects the individual and the economy. The booklet contains the following sections:…

Asserts that many macroeconomics textbooks include arguments about national fiscal policy that may not be relevant nor accurate. Concludes that counter cyclical fiscal policy restricted to changes in income taxes and transfer payments are weak tools in efforts to pull a nation out of recession. (CFR)

Explains the use of forwards, futures, swaps, and options in international currency trading. Argues that pricing options are based on the same basic principles as pricing other financial instruments. Concludes that, although financial markets have developed several new products, hedging and speculation involve similar processes. (CFR)

Maintains that, although U.S. currency today is pure fiat money and not backed by gold or any other precious metal, students frequently ask, "But what about the gold at Fort Knox?" Describes what is really located at Fort Knox, why it is there, its implications for public policy. (CFR)

Presents classroom activities using banknotes to teach history and social studies. Suggests that students' interest in money can be utilized to teach about geography, national heroes, symbolism, and the image a nation wishes to present to its citizens and the rest of the world. Lists sources for obtaining banknotes and directories to help identify…

Asserts that economics students are usually given two descriptions of the money market with the implication that they are consistent with each other. Reviews recent research and presents an asset-substitution model that reconciles the two descriptions of the money market with observed behavior. (CFR)

Describes the use of Shakespeare's "The Merchant of Venice" in an undergraduate course in monetary economics, focusing on the usury theme origins of usury laws, scholastic arguments on paying interest for using money, civil usury laws, and modern theories of interest. It is argued that the play provides an interesting vehicle for an…

A computer game involving macroeconomic stabilization policy for use with college level students is described. Students are asked to take the part of government in manipulating tax rates, expenditures, and monetary policy in an attempt to influence employment and inflation in an open economy. (Author/RM)