We describe Shamir's secret sharing scheme and explain how it can be used for secure and redundant cryptocurrency storage. We include samples of individual and group assignments that can be used in an upper-division cryptology class for students who are familiar with modular arithmetic. It takes about one class to cover Shamir's secret sharing,…

The foreign exchange (FX) market is an important chapter in international finance. Understanding the market microstructure is critical for learning the FX market. To assist students better understand the FX market microstructure, an instructor can use an event study with minute-by-minute quote data provided in the Excel assignment, asking students…

The Federal Reserve System (the Fed) is one of the most important financial institutions in the world. As the central bank of the United States, it influences the domestic money supply, credit, and interest rates with the goal of achieving stable prices and full employment for the world's largest economy. It provides a variety of services to…

The author offers innovative approaches to 3 topics that are typically only briefly mentioned (if at all) in money and banking courses. The first topic is a Treasury bill auction experiment in which students have an opportunity to participate directly. The results from a class of 14 money and banking students are used to explain how an instructor…

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…

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)

This article presents a classroom project that employs various techniques of active learning including role-playing, collaborative group work and writing. The project explores the recent creation of the European Monetary Union (EMU) with special emphasis on the introduction of the euro. The project assumes that the Americas have begun preliminary…