By CCN.com: The Federal Reserve released its latest educational comic book this week. “The Story of Monetary Policy” shows a world stabilized by a central bank through the eyes of an alien visitor who doesn’t understand things like “maximum employment.”
The New York Fed, who publishes the comic books, places itself as the all-important factor in things like “stable prices” and “modern interest rates.”
A local on the planet Novus takes an alien from a distant planet on a tour of the local economy. She explains that the place recently created a central bank to help with everything.
Teaching kids about expansionary and contractionary monetary policy
The comic attempts to explain away low-interest rates, which have discouraged an entire generation from saving money.
The comic book goes through several stages of economic health. It touches on high inflation, with characters complaining that they’re unable to buy as much with their currency as they used to.
As it turns out, however, the main character in “The Story of Monetary Policy” comes from a planet that might have Bitcoin at its heart. The figure explains that he comes from a deflationary economy, where things are very cheap, but money is very scarce.
When money’s too scarce, you need a central bank to issue more of it, kids learn.