• Unit 5: Monetary Policy

    This unit will teach you how economists think about money. For economists, money is something that produces money services: any commodity, document, token, or claim that can be used as a medium of exchange and that people demand for that purpose. If the value of a given asset rises because people demand its services, we call that asset "money" or "money assets". Over time, as different demands for money services arise, new instruments emerge to supply those services. This unit looks at the different motives for demanding money and different forms used to supply the demand. We also explore the role of institutions in regulating money.

    Completing this unit should take you approximately 19 hours.

    • 5.1: Overlapping Generations Model

    • 5.2: Monetary Policy and Inflation

    • 5.3: International Monetary Systems

    • Unit 5 Assessment