CHAIR THE FEDERAL RESERVE
Welcome to my monetary policy simulator.
You will be taking on the role of the Federal Reserve Chairman and Open Market Committee - as such it is your responsibility to decide interest rates. Use the buttons below to increase or decrease interest rates. When you are happy with a rate, chose submit to lock it in for that month.
| Score: |
|---|
Interest Rate Control:
| Month: | Current rate: | Target rate: |
|---|---|---|
| 0 | 0 | 2 |
"I will be advising you during this simulation. Before we get started why not read up a bit on monetary policy. In this game we will be simulating a very basic version of what central banks around the world do. Central banks have many functions and many tools, we will be looking at their dual mandate of controlling unemployment and inflation. If unemployment gets too high you should decrease interest rates to stimulate the economy, but if the economy starts overheating and inflation gets too high, then you should increase interest rates. To make things a bit more interesting every month there is a chance that your economy will experience an extraordinary event. Good luck!"
| Month: | Interest rate: | Unemployment rate: | Inflation rate: | GDP/Score: |
|---|---|---|---|---|
| 0 | 0 | 5 | 2 | 1000 |