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Money & Banking Introduction

What is money? You might never have thought much about it before, but the question is more interesting than you might think. (And the answer is a bit more complicated than "colorful paper in your pocket.")

This is the place to learn about the economic definition of money, where money comes from, how it holds value, how the banking system works in the U.S. and how the Federal Reserve uses monetary policy to influence the entire economy.

Only have a minute? Read the Money & Banking Overview

Our Ph.D.s scoured the Web (so you don't have to).

We've got a lotta' links: video, music, websites, photos... you get the drift.

  • What exactly is the Federal Reserve System?
  • What does the Fed do during recessions?
  • What does the Fed do during periods of inflation?

So, you think it's easy to make the big decisions? Take your turn in the hot seat.

The situation: You're Chairman of the U.S. Federal Reserve facing the twin monsters of inflation and low growth. The nation looks to you to slay these dragons.

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