How are Banks and the Fed Linked? Teaching Key Concepts Today

Ihrig, Jane E.; Weinbach, Gretchen C.; Wolla, Scott A.

doi:10.1080/09538259.2022.2040906

Cited by 8 publications

(7 citation statements)

References 5 publications

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“…The identical speculative flow followed the Eurozone equity markets, where the European Central Bank (ECB) imposed QE measures of 1.8 trillion euros (Škare and Rochon, 2022;Škare and Sinković, 2021). Similarly, the Federal Reserve (FED) in the US confirmed once again that it is the guardian of the capital market artificial respiration (Ihrig et al, 2022). Even though the US economy was heading towards recession during COVID-19, equity markets were quickly recovering.…”

Section: Entrepreneurship and Sustainability Issuesmentioning

confidence: 91%

Sustainability of electricity prices and the consequences for the Prague Stock Exchange

Aliu¹,

Hašková²,

Šuleř³

2022

JESI

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Sustainability of electricity prices hold an important part of the family budget, business operational costs, and vitality of the economy. Currently, multinational corporations are considered the main users of electricity and other energy recourses. For this purpose, we analyze the sustainability of electricity price and their impact equity stocks in the PX Index. The PX Index, which originates from Prague Stock Exchange is generally composed of firms in the financial and energy sector. This paper as well tries to predict the performance of these two variables in the 12 months ahead. The data cover the period from 1995 to 2022 standing on the monthly observations. The Vector Error Correction Model was used to detect the effect that electricity prices maintain on the PX Index. The estimated forecasts were conducted in the R program using Facebook Prophet and Auto ARIMA Model. The results indicate that nonsustainability of electricity prices negatively affect the equity stocks listed on the PX Index. Regarding predictions, the PX Index is expected to stay at almost the same levels while electricity prices increase. The results provide modest indications for investors, government, and regulators on the performance of these two indicators 12 periods ahead. Additionally, it is the first attempt to analyze the relationship between electricity prices and the equity markets since the liberalization of the Czech economy.

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Section: Entrepreneurship and Sustainability Issuesmentioning

confidence: 91%

Sustainability of electricity prices and the consequences for the Prague Stock Exchange

Aliu¹,

Hašková²,

Šuleř³

2022

JESI

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“…In a second paper, with the provocative subtitle 'R.I.P. money multiplier', Ihrig et al (2021) explain the changes to monetary policy in the United States following the financial crisis and COVID. The paper is noteworthy for a few reasons.…”

Section: The Humpty-dumptying Of the New Modelmentioning

confidence: 99%

“…In another words, the money multiplier is dead, and as a recently published paper by the Federal Reserve states, 'R.I.P. money multiplier' (Ihrig, Weinbach and Wolla, 2021).…”

Section: Introductionmentioning

confidence: 99%

Introduction to Central Banking, Monetary Policy and Income Distribution

Kappes¹,

Rochon²,

Vallet³

2023

Central Banking, Monetary Policy and Income Distribution

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“…Course content on banks and the money supply needs to turn to a discussion of how banks choose between investment options. As outlined in Ihrig et al (2021), the content should focus on how banks make investment decisions (including loans) with profits, risks, and regulatory considerations in mind. The content should highlight the Fed’s influence on banks' decisionmaking through the IORB rate, which is a reservation rate for banks.…”

Section: Monetary Policy Today and Going Forwardmentioning

confidence: 99%

“…4Because the Voluntary National Content Standards in Economics and the AP Course and Exam Description focus on normal times and standard tools, our discussion will focus on that content. See Ihrig and Wolla (2020a) and Ihrig et al (2021) for information about the Fed’s use of nontraditional monetary policy tools during times of severe economic shocks.…”

mentioning

confidence: 99%

Closing the Curriculum Gap by Updating Content Standards and Guidelines for Teaching Monetary Policy

Ihrig

Wolla

2022

The American Economist

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The topic of the Federal Reserve’s (the Fed’s) implementation of monetary policy has a significant presence in economics teaching resources. Over the past decade or so, the Fed has purposefully shifted the way it implements monetary policy, introducing a new methodology with new policy tools. Unfortunately, many teaching materials are out of date with the Fed’s current ample-reserves regime and classroom teachers are often guided to teach old content. This guidance often comes from the Voluntary National Content Standards (VNCS) in Economics and the Advanced Placement (AP) Course and Exam Description that are sadly outdated. The VNCS influences the treatment of economics content in K-12 curriculum and textbooks, and the AP course framework determines the content taught in thousands of high school classrooms every year. As such, revising these influential documents is instrumental for closing the curriculum gap. We provide recommendations for how these materials can be updated.

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How are Banks and the Fed Linked? Teaching Key Concepts Today

Cited by 8 publications

References 5 publications

Sustainability of electricity prices and the consequences for the Prague Stock Exchange

Sustainability of electricity prices and the consequences for the Prague Stock Exchange

Introduction to Central Banking, Monetary Policy and Income Distribution

Closing the Curriculum Gap by Updating Content Standards and Guidelines for Teaching Monetary Policy

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