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How can unforeseen circumstances effect the economy

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Reference no: EM131432403

Monetary Policies & Stabilizing Economy

The link above will take you to the "Fed Chairman Game." In this game, you are appointed as the Chair of the Board of Governors of the Federal Reserve by the President in order to implement monetary policy. The game will take you through a simulated economy and allow you to control the federal funds (interest) rate in pursuit of full employment and of price stability. The object of the game is to get appointed for another term.  Read the game's instructions, and play at least two rounds of the game.

After playing, write a paper reflecting on the simulation and describing your experience (250 word minimum). Include the following items in your reflection paper:

  • Using the concepts you've been studying, describe how the game shows the use of monetary policy?
  • How can unforeseen circumstances effect the economy? Give examples.
  • How does the Fed react to these circumstances? Did you get re-appointed? Why or why not?

Reference no: EM131432403

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