Fed Chairman Game Essay Example | Topics and Well Written Essays - 500 words

Fed Chairman Game - Essay ExampleThe purpose of this paper is to discuss the results of the Fed Chairman Game.In the plump for the player must choose the fed interest rates for period of four years or 16 quarters. The player must keep flash and unemployment below 4 and 7 percent respectively. The logic that must be used to make decision is that you can lower inflation by context of use federal funds well above the inflation rate, but doing so will also push unemployment upwards. You can lower unemployment by pushing up inflation by setting the federal funds rate close too or below the inflation rate. Throughout the game after apiece decision there is a newspaper headline that reports what is occurring in the economy based on the Fed decisions. The news must be used by the player in order to make decisions. The table below has a list of some of the newspaper headlines that I saw during the game.During the simulation I employ the news as a point of reference to make decisions. I h ad to look at the impact my decisions had on inflation and unemployment at all times. The actions that I took to get reelection were geared at maintain the general public happy. I ran the simulation three times and I was not able to get reelected. The communication channel of the chairman of the Fed is very hard. During the first two elapses I was not able to keep inflation low enough to get reelected. During the third run I messed up as far as having negative inflation or deflation. I learned from the simulation that monetary policy is extremely of the essence(p) for the well being of the United States. People are happy with their government when there are jobs available in the marketplace and when their money has good get power. Inflation decreases the purchasing power of the US