| The REFF® Ample Reserves Graph next to FRED® Graph |
| Expansionary Monetary Policy Flow Chart with REFF® AR GRAPH and ASAD GRAPH. |
| FOMC Meeting on Tuesday and Wednesday, December 12 and 13, 2023 |
| Contractionary Monetary Policy Flow Chart with REFF® GRAPH and ASAD GRAPH #1. |
| The REFF® Graph |
| REFFONOMICS® BASEBALL -- Ample Reserves Regime for On-Level H.S. Economics |
| next to a FRED® graph. |
"Effective December 13, 2023, the Federal Open
Market Committee (FOMC) directs the Desk to:
In support of these goals (maximum employment
and inflation rate of 2% over the long run) the
Committee decided to maintain the federal funds
rate in a target range of 5-1/4 to 5-1/2 percent.
Market Committee (FOMC) directs the Desk to:
In support of these goals (maximum employment
and inflation rate of 2% over the long run) the
Committee decided to maintain the federal funds
rate in a target range of 5-1/4 to 5-1/2 percent.
| Expansionary Monetary Policy Flow Chart with REFF® GRAPH and ASAD GRAPH #1 |
Administered Rate #1: "The Board of Governors of the
Federal Reserve System voted unanimously to maintain
the Interest Rate on Reserve Balances (IOR) to 5.4
percent, effective December 14, 2023."
Federal Reserve System voted unanimously to maintain
the Interest Rate on Reserve Balances (IOR) to 5.4
percent, effective December 14, 2023."
The Policy Rate is the Federal Funds Rate.
Interest Rate on Reserve Balances (IOR) is the
MOST IMPORTANT TOOL OF MONETARY POLICY!
MOST IMPORTANT TOOL OF MONETARY POLICY!
Administered Rate #3: "In a related action, the Board of
Governors of the Federal Reserve System voted unanimously
to approve the establishment of the Primary Credit Rate at
the existing level of 5.5 percent."
Governors of the Federal Reserve System voted unanimously
to approve the establishment of the Primary Credit Rate at
the existing level of 5.5 percent."
Administered Rate #2: Administered Rate #3: "The FOMC
directs the desk to: Conduct standing Overnight Reverse
Repurchase Agreement (ON RRP) operations at an offering
rate of 5.3 percent . . .
directs the desk to: Conduct standing Overnight Reverse
Repurchase Agreement (ON RRP) operations at an offering
rate of 5.3 percent . . .
Closing a
Contractionary
or a
Negative
Output
Gap
Contractionary
or a
Negative
Output
Gap
Closing an
Inflationary
or a
Positive
Output
Gap
Inflationary
or a
Positive
Output
Gap
| Expansionary Monetary Policy Flow Chart with REFF® GRAPH and ASAD GRAPH #2 |
| Contractionary Monetary Policy Flow Chart with REFF® GRAPH and ASAD GRAPH #2. |
Economics Low Down Video Series, Part I
Ample Reserves Videos by Jane Ihrig and Scott Wolla (Only Use Parts 1 and 2)
Ample Reserves Videos by Jane Ihrig and Scott Wolla (Only Use Parts 1 and 2)
| Videos from the Federal Reserve Bank of St. Louis |
| FOMC Press Conference with Jerome Powell (December 13, 2023) |
Interest Rate on Overnight Reverse Repurchase
Agreements (ON RRP) -- High School Students will NOT
be tested on this administered rate.
Agreements (ON RRP) -- High School Students will NOT
be tested on this administered rate.
A special thank you goes to The Council on Economics Education (CEE) for accepting my proposal to speak
at the 62nd Financial Literacy & Economic Education Conference in Fort Lauderdale, Florida. Another special
thank you goes to the Foundation for Economics Education (FEE), established in 1946, that provided funding
for me to present.
at the 62nd Financial Literacy & Economic Education Conference in Fort Lauderdale, Florida. Another special
thank you goes to the Foundation for Economics Education (FEE), established in 1946, that provided funding
for me to present.
December 13, 2023
| Other On-Level High School Economics Links of Interest: |
| AP Macroeconomics Graphing and Flow Charts |
| AP Macroeconomics Ample Reserves Curriculum Lessons |
| AP Macroeconomics Teacher Knowledge |
| On-Level High School Ample Reserves Curriculum Lessons (below this curriculum is the AP Macroeconomics Ample Reserves Curriculum) |
| Past FOMC Meeting Press Releases: |