Chair The Fed A Monetary Policy Game Answer

Econ 205 simulation chair the fed monetary policy game for the next quarter we kept the fed rate unchanged which brought the unemployment rate at 5 13 and inflation rate at 2 78 because due to financial market crisis where few new loans for consumers and businesses might have affected. Think you have what it takes to run our country s central bank. Think you have what it takes to run our country s central bank.

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Chair the fed a monetary policy game answer.

See if you can achieve full employment and low inflation as chair of the fed. What trends in the economy did you encounter. Favorite answer you re going to find out the two goals are generally mutually exclusive. Were you reappointed at the end of the game.

See if you can achieve full employment and low inflation as chair of the fed. As the chair of the board of governors of the federal reserve how did you respond to these changes in terms of changing monetary policy. How did the economy react to your monetary policy changes. In a one page paper answer the following questions.

Inflation can be lowered when the federal funds are set higher but this will also temporarily increase unemployment. Unemployment rates can be lowered by setting the federal funds close to or below the inflation rate. A monetary policy game. That s why the fed should be sticking to its original task of maintaining a stable money supply.

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