--- title: Monetary Policy description: Monetary policy focuses on how central banks manage money supply and interest rates to stabilize the economy. Learners will understand the mechanisms behind interest rate changes, quantitative easing, and inflation targeting, and their effects on financial markets. category: finance-economics subcategory: economics-(social-lens) difficulty: beginner, intermediate, advanced url: /subject/monetary-policy --- # Monetary Policy Monetary policy focuses on how central banks manage money supply and interest rates to stabilize the economy. Learners will understand the mechanisms behind interest rate changes, quantitative easing, and inflation targeting, and their effects on financial markets. ## Available Resources 1 Videos • 2 Books • 2 Courses • 1 Websites • 2 Papers ## Courses ### 1. Economics of Money and Banking **Author:** Perry Mehrling Columbia University course that analyses the monetary system through balance sheets: the hierarchy of money, payment clearing, repo and Eurodollar markets, dealer market making, central bank crisis operations, foreign exchange and swaps. Learners can read financial crises and central bank interventions as balance-sheet events. **Difficulty:** Intermediate | **Price:** Free **Link:** https://www.coursera.org/learn/money-banking **Tags:** money-and-banking, central-banking, money-markets, shadow-banking, monetary-economics ### 2. Economics of Money and Banking (Money and Banking Lectures) **Author:** Perry G. Mehrling Twenty-two lecture modules with slide decks and reading lists developing the 'money view': the hierarchy of money, fed funds, repo, eurodollars, and the central bank as clearinghouse and dealer of last resort. Shows how policy is implemented in money markets. **Difficulty:** Advanced | **Language:** English | **Price:** Free **Link:** https://sites.bu.edu/perry/lectures/mb-lectures/ **Tags:** money-view, money-markets, central-banking, repo, lender-of-last-resort ## Podcasts ### 1. On the Record by Bitcoin Policy UK **Author:** Bitcoin Policy UK The audio channel of Bitcoin Policy UK, an advocacy think tank, presenting its policy papers, consultation responses, research briefings and staff interviews. It covers UK Bitcoin regulation, central bank digital currencies and digital finance policy from a pro-Bitcoin standpoint. **Difficulty:** Intermediate | **Language:** en-us | **Price:** Free **Link:** https://www.buzzsprout.com/2463523 **Tags:** bitcoin-policy, cryptocurrency-regulation, cbdc, uk-policy, digital-finance ### 2. Macro Musings with David Beckworth **Author:** David Beckworth A long-running weekly interview podcast with current and former central bankers, Fed staff and monetary economists. Episodes cover Fed operating frameworks, balance sheet policy, the Treasury market, independence and the global dollar. The full archive is free. **Difficulty:** Intermediate | **Language:** English | **Price:** Free **Link:** https://www.mercatus.org/macro-musings **Tags:** central-banking, federal-reserve, monetary-policy, monetary-economics, fed-balance-sheet ## Youtubes ### 1. Economics of Money and Banking (Perry Mehrling, full lecture course) **Author:** Perry Mehrling Mehrling's Columbia/Barnard course, filmed in full. It teaches the 'money view': the central bank as clearinghouse, fed funds, repo, eurodollars, the dealer of last resort, and the 2007–09 crisis, all worked through balance sheets. Over 100 video segments, free. **Difficulty:** Intermediate | **Language:** English | **Price:** Free **Link:** https://www.youtube.com/playlist?list=PLSuwqsAnJMtwZEwkJgHZCod2xP9b7skF5 **Tags:** money-view, monetary-economics, repo-markets, dealer-of-last-resort, financial-crisis-2008 ## Papers ### 1. Inside the Black Box: The Credit Channel of Monetary Policy Transmission **Author:** Ben S. Bernanke and Mark Gertler Journal of Economic Perspectives survey arguing that small policy rate changes produce large real effects because they are amplified through borrowers' balance sheets and bank lending. Sets out the balance-sheet and bank-lending channels and the empirical evidence for each. **Difficulty:** Advanced | **Language:** English | **Price:** Free **Link:** https://www.aeaweb.org/articles?id=10.1257/jep.9.4.27 **Tags:** monetary-policy, credit-channel, monetary-transmission, bank-lending, balance-sheet-channel ### 2. Money Creation in the Modern Economy **Author:** Michael McLeay, Amar Radia and Ryland Thomas Bank of England Quarterly Bulletin article establishing that commercial bank lending, not multiplied-up reserves, creates most money. Corrects the money-multiplier and loanable-funds stories, explains what actually constrains bank money creation, and situates quantitative easing within it. **Difficulty:** Intermediate | **Language:** English | **Price:** Free **Link:** https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/money-creation-in-the-modern-economy **Tags:** money-creation, bank-lending, money-multiplier, quantitative-easing, central-banking ## Books ### 1. Lords of Finance: The Bankers Who Broke the World **Author:** Liaquat Ahamed Pulitzer-winning history of the four central bankers whose gold-standard decisions in the 1920s helped produce the Great Depression. Gives a concrete sense of how monetary regimes, exchange-rate commitments and policy errors propagate into real economies. **Difficulty:** Beginner | **Language:** English | **Price:** Paid **Link:** https://www.amazon.com/dp/0143116800?tag=edmonddante07-20 **Tags:** monetary-policy, central-banking, gold-standard, great-depression, economic-history ### 2. The Economics of Money, Banking and Financial Markets (13th Edition) **Author:** Frederic S. Mishkin The standard university text on money, banking and central banking, by a former Federal Reserve governor. Builds the tools for the term structure, the monetary transmission mechanism, central bank strategy, inflation targeting, and policy conduct at the effective lower bound. **Difficulty:** Intermediate | **Language:** English | **Price:** Paid **Link:** https://www.amazon.com/dp/0136894356?tag=edmonddante07-20 **Tags:** money-and-banking, central-banking, monetary-policy, financial-markets, interest-rates ## Videos ### 1. The Federal Reserve and the Financial Crisis: Chairman Bernanke's College Lecture Series **Author:** Ben S. Bernanke Four lectures delivered by Ben Bernanke at George Washington University while serving as Fed chair, with on-demand video, transcripts and slides. Traces central banking from its origins to the 2008 response, covering lender-of-last-resort action and asset purchases. Rare combination of top-of-the-field authority and genuine teaching intent. **Difficulty:** Intermediate | **Language:** English | **Price:** Free **Link:** https://www.federalreserve.gov/aboutthefed/educational-tools/chairmans-lecture-series-about.htm **Tags:** federal-reserve, financial-crisis, central-banking, lender-of-last-resort, quantitative-easing ## Websites ### 1. Monetary Policy: What Are Its Goals? How Does It Work? The Federal Reserve's own explainer on the dual mandate, the federal funds rate, forward guidance and large-scale asset purchases. Shows how a policy rate change transmits through credit, asset prices and exchange rates to employment and inflation. **Difficulty:** Beginner | **Language:** English | **Price:** Free **Link:** https://www.federalreserve.gov/monetarypolicy/monetary-policy-what-are-its-goals-how-does-it-work.htm **Tags:** monetary-policy, federal-reserve, dual-mandate, federal-funds-rate, monetary-transmission --- *This content is part of Dantes.io - Your Treasure Map to Knowledge* *Curated by humans at Dantes.io. Personal study use welcome; republishing this curation requires permission (team@dantes.io).* View this page online: https://dantes.io/subject/monetary-policy