Monetary Policy Think you have what it takes to run our country's central bank The President of the United States has nominated you and the U S Senate has confirmed you to serve as the Chair of the Federal Reserve Your job is to set monetary policy to achieve full employment and low price inflation The way you do that is by adjusting the Federal Funds Rate (FFR) up or down Your term will last 4 years (16 quarters) See if you can achieve full employment and low inflation as Chair of the Fed Go to this website Chair the FED(Links to an external site ) Click Play Now to begin the game According to monetary theory that you studied in this module, how does a change in the Federal Funds Rate affect the inflation rate How does it affect the unemployment rate Given the current inflation and unemployment rates, how should you adjust the FFR That is, should you increase or decrease the FFR, or leave it the same Choose the FFR for the next quarter What did you adjust it to What was the impact on the inflation rate What was the impact on the unemployment rate Did you obtain the impact you were hoping for Why or why not What conclusions can you draw about the job of the Fed in the real world

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Monetary Policy: Think you have what it takes to run our country's central bank? The President of the United States has nominated you and the

Monetary Policy: Think you have what it takes to run our country's central bank?

The President of the United States has nominated you and the U.S. Senate has confirmed you to serve as the Chair of the Federal Reserve. Your job is to set monetary policy to achieve full employment and low price inflation. The way you do that is by adjusting the Federal Funds Rate (FFR) up or down.Your term will last 4 years (16 quarters).See if you can achieve full employment and low inflation as Chair of the Fed.

Go to this website:Chair the FED(Links to an external site.)

Click "Play Now" to begin the game.

According to monetary theory that you studied in this module, how does a change in the Federal Funds Rate affect the inflation rate? How does it affect the unemployment rate?
Given the current inflation and unemployment rates, how should you adjust the FFR? That is, should you increase or decrease the FFR, or leave it the same?
Choose the FFR for the next quarter. What did you adjust it to?What was the impact on the inflation rate? What was the impact on the unemployment rate? Did you obtain the impact you were hoping for? Why or why not?
What conclusions can you draw about the job of the Fed in the real world?