Understand the role of the Federal Reserve System in determining U.S. monetary policy; analyze how interest rates affect consumer spending, savings, and debt; explain the impact of U.S. economic policies on domestic life, as well as on international trade practices and the global economy.

Throughout history, money has taken many forms, from shells to coins to paper to plastic credit cards. The U.S. Federal Reserve System, or central bank of the United States, regulates the nation’s money supply and interest rates to maintain the stability of the banking system and smooth the business cycle. Working in concert with the government’s fiscal policies, this monetary policy is aimed at protecting American consumers and institutions from the problems caused by financial instability. Monetary policy influences everything from foreign exchange rates to mortgages to the ability of Americans to purchase on credit. The impact of U.S. monetary policy extends beyond America's borders, affecting international trade, and consequently, the livelihoods of people throughout the world.

• CA  11.6:1,2; 11.8:4; E 12.3:4 Historical Interpretation: 1
• TX  113.35(6): a-c; (7)a-b; 113.38(1): b
• FL  SS.D.2.4: 6
• NCSS  VII (HS): d,g,i,k; IX (HS): e

2 class periods

• Activity Sheet, Economic Policies in the United States
• Tours Through Time, Money: From Real to Virtual 
• Graphic Organizer, Two-Column Chart
• Research Report Rubric

Use the instructions below to guide students in writing a Research Report.

How have U.S. economic policies affected domestic life and international trade?

Make Connections Students will write a Research Report that examines the impact of American economic policies on domestic life, and on international trade and business. Students will research topics addressing the role of the Federal Reserve and government fiscal policy in maintaining different aspects of personal and commercial life.

Have students research the topic using the provided links. Encourage them to use the suggested graphic organizer as they read the articles.

From seashells to credit cards, money has taken different forms throughout history.

To start students thinking about economic policies in America, have them examine the photographs.

Key questions students should answer are:

• How has money evolved over time?
• What factors might cause economic instability in a society?

Distribute the Student Activity Sheet. Tell students that they will be writing a Research Report in which they will explore the social, economic, and political impact of U.S. economic policies on different aspects of daily life. Remind students to consider the role of government fiscal policy, as well as the Federal Reserve System as they research the following topics.

• Interest Rates
• Inflation
• Bank Failure
• Globalization
• Consumer Credit
• Unemployment and Debt
• Fiscal Policy and Agriculture
• Fiscal Policy and Social Security

Tell students that their report will need to include a thesis statement, historical examples, and supporting details from their readings.

Use the Research Report Rubric to assess students’ performance.

Have students reflect on their performance and use the list of expectations to judge how well they met the criteria.

Ask students: How have Federal Reserve policies affected your life?

Panel Discussion Have students use Daily Life through History to conduct research for a panel discussion in which they will address whether or not U.S. fiscal and monetary policy has been successful in protecting Americans from financial instability in modern times (1960-1990).

Critical Thinking: EVALUATE