Using Bloomberg, CNBC and FRED to Teach Money and Banking, and Monetary Policy

This paper shows the benefits of incorporating technology in teaching economics classes. Through use of Bloomberg terminal, CNBC and FRED (St Louis Federal Reserve Economic Data), the author provides students with a different pedagogy from traditional teaching methods. A five-step approach is used to incorporate Bloomberg (to varying degrees) into each of these classes. Using Bloomberg in the classroom, students are presented with the market reaction to headline news and data in real-time, without the delays associated with other data sources. In microeconomics, the focus is more on the different types of markets and supply and demand. In macroeconomics, more time is spent on statistical releases of economic variables and the examination of their trends. In courses such as The Impact of News on Financial Markets, Money and Banking, and Monetary Theory and Policy the reaction of financial markets as well as the Central Bank to economic data, as the government and other private sources disseminate them, are considered. In International Finance the reaction of the foreign exchange market to domestic, global economic and financial markets news is studied. In investments, portfolio management, and fixed income analysis, a variety of technical and analytical tools are utilized together with the real-time data that Bloomberg provides to show students how fundamental or technical decisions are made in the equities or fixed income instruments' markets. This method brings students into the laboratory of the real world using real time data and news to reinforce and to apply his/her knowledge of theory and institutions. A methodical way of using this technology in teaching economics courses is discussed. Results suggest that using this strategy makes students' comprehension of theoretical and applied material deeper. Moreover, their performance in other classes, internships and jobs suggests that this approach improves retention.