Inflation is the general increase in prices of goods and services over time. One unit of currency buys fewer goods as prices rise. Measured as percentage change in Consumer Price Index (CPI)
Inflation rate shows yearly price changes in products and services. Federal Reserve aims for 2% inflation target. Core inflation excludes volatile gas and food prices
Federal Reserve is independent entity established in 1913. President appoints chair, Congress approves appointments. Board members serve on terms not matching elected officials
The Great Depression lasted from 1929 to 1945, causing widespread economic decline. Industrial production plummeted, unemployment surged, and families suffered. The contraction began in the US and spread globally
OMOs involve Fed's buying and selling securities to regulate money supply. Fed purchases securities to increase money supply, sells to reduce it. OMOs affect federal funds rate, influencing other interest rates
Green Book is a comprehensive guide or report published by government agencies. Provides guidance on financial transactions and market projections. Available globally, including US, Canada, and UK