Module 6: The Federal Reserve and monetary policy Exploration of how money is created, how it affects the economy, how the Federal Reserve is structured, and of the nature of monetary policy By the end of this module you will be able to: M06.L01. Explain transmission mechanisms that can turn small, isolated shocks into larger, economy-wide business cycles (CO1, CO2, CO3, CO4, CO5, CO6) M06.L02. Explain the basic facts about money creation, the organization and role of the Federal Reserve, and how money is created (CO1, CO2, CO3, CO4, CO5, CO6) M06.L03. Identify problems that make effective use of monetary policy difficult (CO1, CO2, CO3, CO4, CO5, CO6)