1: Introduction. Why is the Federal Reserve (the Fed) so important to the country? ; When and why was the Fed founded? ; How did the Fed evolve? ; How in general does the Fed compare with other central banks? ; How does a central bank differ from other banks and financial institutions? ; How do the Fed's unique policy instruments affect the nation's economy as a whole? ; If so crucial to national policy, why is the Fed independent of the government? -- 2: The Fed's organization for policy. Where does responsibility for monetary policy decisions reside in the Fed? ; What does the FOMC do and how is it organized? ; How are other monetary policy instruments controlled? ; How is the politically appointed Board of Governors chosen? ; How are Reserve Banks governed? ; What role do Reserve Banks play in the policy process? ; Should the regional structure of the Fed be modified for today's world? ; Should reserve bank presidents be politically appointed? ; Do member banks and directors of Federal Reserve Banks unduly profit or exert influence? ; What happens to the profits from Fed operations? ; What is the underlying connection between the government and the Fed? ; How does the government keep tabs on the Fed? ; What does it mean in practice to say the Fed is independent? -- 3: Basic monetary policy objectives. What are the Fed's basic objectives? ; How does the Fed take account of long-run economic goals? ; What role does the Fed chairman play in focusing the institution's goals? ; In what sense are the Fed's monetary policy objectives compatible with each other? ; What does price stability mean? ; What makes the Fed prefer a little rather than no inflation as its practical goal? ; What inflation rate seems to satisfy the goal of price stability? ; Has the Fed specified a target rate of inflation? -- 4: Instruments of monetary policy. How are the Fed's monetary instruments employed in the policy process? ; Which of the Fed's instruments are most significant for implementing policy? ; How are open market operations employed in policy implementation? ; How does the federal funds rate connect with money market conditions in general? ; How does the funds rate decision affect other credit markets? ; How do key borrowers respond to changed market conditions? ; How do FOMC policy decisions adapt to market uncertainties? ; How do open market operations avoid creating too much money and inflation? ; Does the money market itself influence spending or is it mostly a policy conduit? ; Are the Fed's powers also used to influence the government securities market? -- 5: The formulation and communication of monetary policy. What is the institutional structure for monetary policy decisions? ; What material is provided to the FOMC for discussion of the economic outlook? ; What material is provided to help the Committee form its monetary policy decision? ; How do Committee members construct their discussion of the economy and monetary policy? ; What, in general, are the main influences on the Fed's policy decision? ; How do Committee members frame and communicate their decision about policy? ; How influential is the chairman in the policy votes? ; Why has the Fed become much more open about policy in recent decades? ; Can there be too much openness? -- 6: The Fed's role, other domestic policies, and conditions abroad. What policies outside the Fed's control most influence its policy effectiveness? ; How do fiscal and monetary policies best fit together? ; How are decisions about coordinate roles of fiscal and monetary policies make it practice? ; How do regulatory issues relate to monetary policy and its dual economic objectives? ; How does the Fed's own regularity authority fit into the nation's regulatory structure? ; How has the Dodd-Frank Act influenced the Fed's regulatory stance? ; How might the Fed better integrate monetary and regulatory policies? ; How is Fed policy influenced by policies and conditions abroad? ; Will the Fed's ability to make monetary policy decisions on purely domestic grounds be significantly lessened by further integration of world financial markets? -- 7: The Fed's two great postwar crises. In what ways are the two great postwar crises similar? ; How did the Fed becomes involved in the great inflation's onset? ; How did the Fed control inflation and regain credibility? ; What again destabilized the economic and financial background for Fed policy? ; How did the Fed become involved in the great credit crisis? ; What actions did the Fed take to help contain the crisis? ; What activities did the Fed take to help contain the crisis? ; How did the Fed contribute to the recovery? ; What lessons can be learned from the Fed's management of the two great postwar crises? -- 8: Conclusion. What major challenges face the Fed as an organization in the future? ; How well has the Fed served the country? -- Appendix A-1 -- Appendix A-2.