In the aftermath of Tuesday's FOMC decision, I've been putting together a list of appropriate links for the classroom.
For a sound discussion of the decision, I would recommend William Polley's blog. He's a good Fed-watcher, and seems to have a balanced view.
Although written prior to the decision, Aplia has a good discussion for the classroom, as well as some discussion questions.
As for my view? I'm afraid my opinion can be deduced from the title of this site, and my interest in the works of Milton Friedman. While the Fed has a dual mandate, I believe its best option is focus on inflation. And I think that explains the tilt in the last part of the statement, "However, the Committee judges that some inflation risks remain, and it will continue to monitor inflation developments carefully. Developments in financial markets since the Committee’s last regular meeting have increased the uncertainty surrounding the economic outlook. The Committee will continue to assess the effects of these and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth." That sounds to me like they intend to watch the price data closely for the foreseeable future, and remain ready to act.
What's your take? What do your students think? I look forward to your comments.