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Teaching Economics

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How the US Federal Reserve sets interest rates

Graham Watson

28th November 2017

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How the Federal Reserve sets rates. It's American-focused but shows how the base rate is only part of the story for the average bank customer, and thus equally applicable to the UK too.

Here is a chart showing the Effective Federal Funds Rate since 1955.

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Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to Tutor2U, reads voraciously and is interested in all aspects of Teaching and Learning.

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