Regional President Speech

Luncheon remarks Chicago area teachers workshop July 22, 1994 I. GREAT PLEASURE. A. LIKE TO THANK ALL FOR PARTICIPATION. B. PLEASED TO BE HERE BECAUSE BELIEVE ECONOMIC EDUCATION IS PARTICULARLY IMPORTANT. II. FEDERAL RESERVE SYSTEM AND THIS BANK HAVE TAKEN AN ACTIVE INTEREST IN ECONOMIC EDUCATION IN PAST DECADE. A. THIS INTEREST REFLECTED IN WORKSHOPS SUCH AS THIS AND IN PARTICIPATION IN ORGANIZATIONS SUCH AS THE STATE COUNCILS ON ECONOMIC EDUCATION. 1. AM MYSELF A MEMBER OF THE GOVERNING BOARD OF THE ILLINOIS COUNCIL ON ECONOMIC EDUCATION. 2. KARL SCHELD, OUR SENIOR VICE PRESIDENT IN CHARGE OF ECONOMIC RESEARCH, IS A DIRECTOR OF THE ILLINOIS COUNCIL. 3. ROBY SLOAN, SENIOR VICE PRESIDENT AND HEAD OF OUR DETROIT BRANCH, IS A DIRECTOR OF THE MICHIGAN ECONOMIC EDUCATION COUNCIL. 4. NANCY GOODMAN, OUR SENIOR VICE PRESIDENT IN CHARGE OF COMMUNITY AND INFORMATION SERVICES, IS A DIRECTOR FOR THE COUNCIL IN WISCONSIN. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5. INDIANA COUNCIL. 6. CLOSE TO HAVING OUR FEDERAL RESERVE DISTRICT COVERED. III. AS YOU CAN TELL, THERE'S BEEN A PRODUCTIVE PARTNERSHIP BETWEEN THE FEDERAL RESERVE BANK OF CHICAGO AND THE STATE COUNCILS ON ECONOMIC EDUCATION. A. THIS WORKSHOP YET ANOTHER EXAMPLE. B. LIKE TO THANK DA VE DIETERLE FOR HIS MARVELOUS ASSISTANCE IN HELPING TO ORGANIZE AND TEACH THIS WORKSHOP AS WELL AS THE ELEMENTARY EDUCATION WORKSHOP LAST WEEK. IV. WE HOPE THESE EFFORTS WILL HELP TO ENHANCE UNDERSTANDING ABOUT THE FEDERAL RESERVE. A. OVER THE YEARS, THERE'S BEEN A FAIR AMOUNT OF CONFUSION OR MISUNDERSTANDING ABOUT THE FED. 1. SOME OF YOU MAY BE FAMILIAR WITH THE FILM SPEAKING ABOUT ECONOMICS, IN WHICH JUNIOR HIGH SCHOOL STUDENTS WERE ASKED ABOUT THE FEDERAL RESERVE. 2. MORE THAN ONE STUDENT THOUGHT THE FED WAS A PART OF THE ARMED FORCES. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3. WORSE YET, BACK IN THE MID-1970S, THE FEDERAL RESERVE CONDUCTED A STUDY IN WHICH A SURPRISING NUMBER OF ADULTS THOUGHT THE FED WAS A NATIONAL PARK, A GAME RESERVE, OR EVEN A BONDED BOURBON. V. WE'VE MADE GREAT STRIDES IN ECONOMIC EDUCATION SINCE THEN, BUT THERE'S ROOM FOR IMPROVEMENT. A. AS INDICATED BY A GALLUP POLL IN 1992 DESIGNED TO\ MEASURE THE PUBLIC'S ECONOMIC UNDERSTANDING. B. THE POLL--WHICH WAS SPONSORED BY THE NATIONAL COUNCIL ON ECONOMIC EDUCATION AND THE FEDERAL RESERVE, AMONG OTHERS--REVEALED A DISTRESSING LACK OF KNOWLEDGE OF ECONOMICS. 1. FOR EXAMPLE, SURVEY RESPONDENTS IDENTIFIED UNEMPLOYMENT AS THE ECONOMIC ISSUE ABOUT WHICH THEY WERE MOST CONCERNED, BUT ONLY 22 PERCENT KNEW THE CURRENT UNEMPLOYMENT RATE. 2. ANOTHER PRESSING ISSUE IDENTIFIED BY RESPONDENTS WAS THE FEDERAL BUDGET DEFICIT, YET ONLY ONE OUT OF TWO WAS ABLE TO SELECT THE CORRECT DEFINITION OF SUCH A DEFICIT. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3. AND PARTICUIARLY DISAPPOINTING TO THOSE OF US AT THE FEDERAL RESERVE, ONLY ONE OUT OF THREE KNEW THAT THE FED IS RESPONSIBLE FOR MONETARY POLICY. C. NOT A REFLECTION OF EDUCATOR'S EFFORTS--MANY OF THE RESPONDENTS INDICATED THEY HAD NEVER TAKEN A COURSE IN ECONOMICS. 1. AN ENCOURAGING NOTE, THERE WAS A NEAR UNANIMOUS AGREEMENT AMONG THE RESPONDENTS THAT SCHOOLS SHOULD TEACH MORE ABOUT THE ECONOMY. VI. MUST CONFESS WE HAVE A SOMEWHAT VESTED INTEREST IN ENCOURAGING ECONOMIC EDUCATION. A. BELIEVE THAT PEOPLE THAT UNDERSTAND ECONOMICS AND IBE FEDERAL RESERVE WILL BE ABLE TO MAKE MORE INFORMED JUDGEMENT REGARDING THE FED'S ACTIONS. B. FROM A WIDER PERSPECTIVE, ECONOMIC LITERACY IN GENERAL IS CRUCIAL--ESSENTIAL IN A DEMOCRACY TO HA VE AN INTELLIGENT, INFORMED ELECTORATE. VII. THIS UNDERSTANDING IS MORE IMPORTANT THAN EVER, GIVEN IBE RAPID PACE OF CHANGE. A. ANCIENT CHINESE CURSE "MAY YOU LIVE IN INTERESTING TIMES"--MORE APPLICABLE THAN EVER TODAY. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B. WE'RE CERTAINLY LIVING IN SOME VERY INTERESTING TIMES. C. CLICHE TO NOTE THE ACCELERATING PACE OF CHANGE, BUT IF ANYTHING THE PACE HAS INCREASED. D. GIVEN THE INTERESTING TIMES IN WHICH WE LIVE, ECONOMIC EDUCATION IS PARTICULARLY ESSENTIAL. VIII. DURING THIS PAST WEEK, WE'VE DISCUSSED SOME OF THE CHALLENGES WE FACE. A. HOPE THIS WORKSHOP WILL HELP YOU IN TAKING ON THE VERY IMPORTANT CHALLENGE THAT YOU FACE AS EDUCATORS. B. TEACHING THESE RATHER ABSTRACT ECONOMIC CONCEPTS IS NO SIMPLE TASK. 1. HOPE THAT WE'VE MADE YOUR JOB A LITTLE EASIER. 2. NOBODY PLAYS A MORE IMPORTANT ROLE IN ECONOMIC EDUCATION THAN YOU. 3. APPRECIATE THAT YOU'VE TAKEN THE TIME AND EFFORT TO BE HERE. C. AS A SMALL INDICATION OF OUR APPRECIATION WOULD LIKE TO PRESENT CERTIFICATES MARKING YOUR COMPLETION OF THIS COURSE. 1. BELIEVEe9.'''IrAS'AG~-I~:,.~ ASSIST ME. (____ 7f l)f N'c fV\ d- 'vJI L-1...,- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Silas Keehn (1994, July 21). Regional President Speech. Speeches, Federal Reserve. https://whenthefedspeaks.com/doc/regional_speeche_19940722_silas_keehn

@misc{wtfs_regional_speeche_19940722_silas_keehn,
  author = {Silas Keehn},
  title = {Regional President Speech},
  year = {1994},
  month = {Jul},
  howpublished = {Speeches, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/regional_speeche_19940722_silas_keehn},
  note = {Retrieved via When the Fed Speaks corpus}
}