Top Leaderboard, Site wide
Winner 2013 Webby Awards for Best Political Website
Top Banner, Site wide
Apr 24, 2014

 Choose a size
Text Size

The Key to 2014

The Divide

Truthdig Bazaar
Beyond the Revolution

Beyond the Revolution

By William H. Goetzmann

Citizen Stan

Citizen Stan

By Patty Sharaf with Robert Scheer

more items

Ear to the Ground

The Federal Reserve for Dummies

Email this item Email    Print this item Print    Share this item... Share

Posted on Jun 20, 2012
Guardian in America interactive team

Every now and then the Fourth Estate fulfills its commitment to public education by taking readers back to the fundamentals of how institutions work. The Guardian has done so with an easy-to-watch primer on the Federal Reserve.

Watch the animation and see the transcript here.

—Posted by Alexander Reed Kelly

The Guardian:

[H]ow does the Fed influence the economy?

Two ways: first, it can pump more money into the financial system if the economy appears to be slowing, or cut down the money supply if the economy seems to be overheating.

Second it can also raise or lower interest rates. When the Fed lowers interest rates it makes borrowing cheaper, which is supposed to stimulate the economy by getting businesses – and people – to spend money. Similarly, when interest rates go up, borrowing becomes more expensive, and the economy cools.

Read more

More Below the Ad


Square, Site wide

New and Improved Comments

If you have trouble leaving a comment, review this help page. Still having problems? Let us know. If you find yourself moderated, take a moment to review our comment policy.


sign up to get updates

Right 1, Site wide - BlogAds Premium
Right 2, Site wide - Blogads
Join the Liberal Blog Advertising Network
Right Skyscraper, Site Wide
Join the Liberal Blog Advertising Network

A Progressive Journal of News and Opinion   Publisher, Zuade Kaufman   Editor, Robert Scheer
© 2014 Truthdig, LLC. All rights reserved.