Check out this game created by the Federal Reserve. It deals with exactly what we are studying right now, monetary policy. The game puts you in the position of the Fed Chairman, and you must manipulate interest rates in order to balance unemployment and inflation. Click on the learn more button before playing. Investigate the Fed Toolkit and the other items in the help section. After this play the game. Give me a short summary of your strategy and how it went.
70 comments:
David Adeogba
Period 6
My strategy was to react to the hints given by the news. I allowed the job market to run a little rampant, because unemployment gets fixed a lot more quickly than inflation. I tried to keep inflation steady and if unemployment got too high all of a sudden I would just drop the federal funds rate. Saying this, I did run the funds rate fairly high throughout the game. It was a good strategy to keep inflation more or less in check. I ended up with about 2.5% inflation and 4.8% unemployment. This strategy did not work very well when I got hit with stagflation the second time.
2nd Period
My strategy was to keep unemployment at about 4 percent the entire time. I managed to maintain it, but the inflation rate was getting extremely high. Then, I began to cut the money supply, and the inflation rate was still high. I would be a horrible Chair of the Federal Reserve, because I could never tell when the inflation rate was going to get out of control.
Victor Varghese
period 2
My strategy was to act according to the hints from news headlines. I thought it was the best plan. I had a hard time balancing my inflation. I tried increasing and decreasing money supply but I was unable to control my inflation. I was a terrible Chair of fed. I ended up with 10.5% inflation and 1.76% unemployment.
Laura Rezmer-Cooper
Period 2
My strategy was trying to keep inflation between 2%-3% and unemployment at 4%-5%. I managed to keep inflation at a steady enough rate. My inflation on the other hand was out of control. It kept going down, down, down. I tried cutting the money supply to help boost inflation, but it kept making it go down. I tried to use the information from the breaking news that came in. Then i had a stock market crash and didn't know what to do. I would probably be a very horrible Chair of the Federal Reserve. I had no idea what to do once the stock market crashed. The country would probably be scared if I had this job. None of the strategies i used worked, so then I just tried anything from there.
MY strategy was to follow and react what was going on in the news. This job is actually harder than it seems because sometimes the economy just keeps going and it is very hard to step on the brakes. Even with high interest rates, sometimes inflation just kept on going without even a slight break. It is better to not start many trends, because they are very hard to stop.
Ashley Verghese
P4
It was difficult to balance the inflation.At first I tried to keep inflation between 2.2%-3% and it was going good but also trying to keep unemployment at 3.5%-4% did not work out. I tried using the News Headlines as my strategy to keep inflation balanced. I kept the federal funds rate at a high point but the inflation got too high. The hints at the top were not helpful because as I adjusted the federal fund rate the inflation rate kept going up continuously. I would not be a good Chair of the Federal Reserve. I ended the game with 6.21% inflation and 4.3% unemployment.
Jignesh Mehta
P6
I struggled to keep both the interest and unemployment rates in check. I tried to keep the unemployment and inflation rate under 4 percent but one of them went out of control while one was in control. Next, I attempted to keep the lines stable at their starting point by moving the fed funds rate to about 4.5 percent. This worked until the headlines came on. As a reaction to the headlines, I drastically lowered the federal funds rate to zero percent and slowly raised it as inflation returned from deflation and unemployment reached the natural rate. However, I ended with an inflation rate of 3.2% and an inflation rate of 3.4% because of my delayed change of the final federal funds rate.
Wara Maknojia
P4
My strategy was to keep inflation and unemployment rates low, but had a hard time balancing the two and keeping them between 4% or less. I tired cutting the money supply and also tried to adjust the inflation rate but nothing really helped. I tried to use the tips that they offer as well but those didn't help either. Everything was just crashing. I would be a terrible Chair or the Federal Reserve. I ended the game with 7.75% inflation and 5.6% unemployment.
Shaban Momin
Period 4
The strategy I decided to utilize was following the headlines. I was trying to keep the inflation rate below 3% and I was also trying to keep the unemployment rate below 4%. This game a quite difficult because I struggled to keep to those percentages equal at time. If my unemployment rate increased I would decrease the federal funds. However, the hints sort of helped me out in a way. I ended up with 4.68% unemployment rate and 2.24% inflation rate. I can confidently say that I would be an amazing Chair of the Federal Reserve.
I had to play this game four times just to get a good outcome and be appointed again. My strategy was to at first, keep everything level and not make any drastic changes because the economy was already doing well, but to later raise the federal fund rates to 5% and keep everything in order. But, something came along and disrupted my perfect economy, so if it was the market crash, I had to lower the federal fund rate so people could keep their jobs, and inflation would go up or if it was the dollar was going down overseas I had to raise the federal fund's rate. No matter what was happening, I just tried to keep a close look at everything and not act too hastily.
I steadily increased the fed rate by .5% just to make the economy grow, but I failed to adjust my rates soon enough when unemployment rates started to fall tremendously, which made the economy unsustainable. Out of panic, I dramatically increased the federal interest rate which caused stagflation, and then I got fired
Aneeka Khan
Period 4
The inflation that i experienced best correlate to the increasing funds, but as it continued to rise up, the inflation composite remained at a declining rate, and caused many enticement that enlisted on a large percentage relating to unemployment. But during this process, i have discovered the difficulty of maintaining a steady incline. Monetary policy can affect prices and output are identified and their relative importance is assessed monetary control has been associated with greater predictions to certain outcomes link from money supply to inflation.Thus I responded to this by changing the monetary value in changing the monetary percentage to show a steady incline, but it later backfired and caused a large inflation and mass amount of unemployment range. But as i increased 5% the inflation began to increase with a range of 2.0-3.0% as i increased in different rates3..
Varsha Martin
2nd pd
My strategy of the game was to keep both the inflation and unemployment staedy but it didn't happpen.I tried to keep the inflationa and unemployement by looking at what the news is what is saying.Even then I still failed to adjust the rate until the second game where I learned to adjust the rates.With the rate that is inctreased will make dramatically increased the federal interest rate that caused stagation taht made me fired on the first game.
Daniel Doucet
2nd Period
I wanted to focus on unemployment and hope that inflation didn't get too out of hand. I lowered rates to help unemployment, and when the oil crisis hit, inflation skyrocketed out of control due to a particularly low rate when it hit. This led to almost hyperinflation levels of inflation at 8% and 9%. While unemployment was at 2%, which was good, inflation never calmed back down no matter what I did. This would be a terrible state for the economy.
My strategy was to keep inflation and unemployment steady. i lowered rates and inflation went out of control. I wanted a steady economy seeing how the economy was doing so well already. every time I brought the funds up there would be an increase in unemployment. perhaps due to the fact I didn't really understand what I was doing. I played the game twice and still failed so my strategy did not work at all
Marcella Winfiele
Period 6
My strategy was to try to maintain normal unemployment rate, while also trying to maintain interest rates which was reasonable to avoid increase in inflation. As we we decreased interest rates, unemployment rates fell; however, inflation rates slightly increased. I was trying to maintain a balance of all three variables, with the understanding of there is no such thing as full employment in an economy. At roughly 4% interest I was able to keep unemployment slightly above the normal 5%; however, increased inflation by 1.32%. Yet, there were also outside influences on certain decisions made, such as, housing market crashed, which impacts a direction into a decision and reevaluating to se if the correction happened.
It was hard trying to keep both at a good percentage. At first my strategy was to keep increasing but then I tired looking at the news reports to see what needs to happen due to the circumstances of the economy.
I tried to inhibit to keep the unemployment rate down by keeping the inflation rate around the target rate. I did this by raising the fed funds rate to deflate the money supply and lowering the fed funds rate to inflate the money supply. Unfortunately, I allowed the fed funds rate to remain at a high rate, which crashed my economy due to deflation rates.
Rizna Noorani
2nd period
The game did not go very well for me. I had a stock market crash during my term. I tried to adjust the feds fund rate to deflate and inflate the money supply but it failed to make much difference. I think i should have adjusted these rates by a larger margin to see better results. I maintained normal unemployment rate for the first 5 stages of the game but after that the unemployment rate went up and I couldn't get it back under control.
May Liew- Period 6
I tried to lower my inflation rate and raise my unemployment rate by increasing federal funding which kept the economy stable. As I steadily increased the federal funding, big increase in spending made the inflation rate go up and unemployment went down drastically. I tried to lower federal spending but it made the inflation and unemployment rate worse. Any efforts made to stable the economy, just made it worse. The consumers' behavior was hard to anticipate so my efforts backfired.
Period 2
At first I either raised or lower my fed fund based on the news but then the inflation started to get out of control. So then tried adjusting my rate based on the inflation rate. At the end it didn't work out so well. I ended up with really high inflation rate and a low unemployment rate.
My primary strategy was to look at the trend lines given and based off of my knowledge of increasing and decreasing the inflation and unemployment rate, I manipulated the federal funding. The news hints also were indicative of what was to come. I ended the game with 1.5% unemployment and 10.2% inflation. This yielded mixed results.
Period 4
My strategy was to increase and decrease federal funds based off of the news headlines. This did not work well because inflation kept going up no matter what i did. I tried to lower federal funds but inflation still kept going up. I tried increasing federal funds and inflation still kept going up. However, i did manage to keep unemployment rate relatively low. All of my efforts to stabilize the economy backfired.
Minnu Augustine
Period 2
My strategy for the game was to keep inflation around the target inflation rate and unemployment around the natural unemployment rate. Starting out, I was doing quite well. I paid some attention to the news headlines which helped me out a little bit. Sometimes, it was better to follow my instinct. I managed to keep the inflation rate stable, but the unemployment increased quite a bit.
Mervin Cherian
Period:2
My strategy for the game was to make sure inflation rate did not rise too high, so I kept interest rates pretty high. This led to deflation and an 8 percent unemployment rate. So then I went all the way down to low interest rate. At first inflation rate was not going up at all, but slowly the inflation rate went up to negative 1 percent and unemployment rate went back down to 5 percent. I was able to stabilize unemployment rate but not inflation. Throughout the whole game, my major goal was to keep the two rates stable. This means that I was not focusing on the headlines too much. Most of the time I just ignored it which was a huge mistake.
My strategy was to first increase the fed rate to make the economy grow, but i was not able to adjust the rates soon enough. Since that didn't work, I focused on keeping the unemployment and inflation rates low, but it was difficult balancing them both. I kept the inflation rate between 3% and tried keeping the unemployment rate at 4%. I even tried following the News Headlines but that didn't work out so well. I'm probably not the best choice for "Chair of the Federal Reserve"
Robert Propper
6th period
My first strategy was to inspect the trend lines that was given and based off the teachings of you of the inverse relationship of unemployment and inflation rate i knew what to do. The news hinted as to what was going to happen. I ended the game with 1.1% unemployment and 11.2% inflation. This gave me mixed review and that i should not mess with anything in monetary policy for a while.
Destiny Stanley 2nd
MY strategy was to follow and react what was going on in the news. This job is actually harder than it seems because sometimes the economy just keeps going and it is very hard to step on the brakes. Even with high interest rates, sometimes inflation just kept on going without even a slight break. It is better to not start many trends, because they are very hard to stop.
My strategy was to not touch anything and to see if everything went smoothly and it did for the first couple of turns, but the inflation rate would eventually grow to large and I would have to find a way to adjust. I played it several times to see the best ways to keep inflation and unemployment stable, but the scenarios would change so I couldn't figure out which was the best plan.
My strategy was to manipulate the interest rates based on the news clippings above, at first it worked out but then both the unemployment rates and the inflation started to go away from its natural state. So then I began to try and figure out how to keep both the unemployment rates and the inflation rate at a steady level and tried that for the next couple of rounds.
Jasmine Patience
Period 2
This game was a real struggle for me. I tried to keep the inflation under 4% and unemployment under 5% I reacted to the news articles and titles by adjusting all the factors depending on what the news said. I played the game a couple of times and usually got the same outcome. Good thing I'm not working for the federal reserve.
6th period
My strategy was to try to keep interest rates constant the whole time because instability is harmful. It kept unemployment at its natural level, but inflation kept increasing. So from there, I adjusted the interest rate to curb inflation, but it then impacted unemployment. I tried to follow the news headings that would appear, but I would end up doing the opposite of what should have been done. Overall, I was unsuccessful.
Yash Bindal
6th period
My strategy was to move the federal funds rate against the trendline and base the magnitude of the move on how far I was from normal conditions. For example, when a random event caused unemployment to skyrocket and inflations to plummet, I quickly brought the federal funds rate down a great deal. As conditions normalized, I slowly moved the funds rate back up. This was done in an attempt to prevent over correction. In the end, I had 3.93% unemployment rate, a 1.96% inflation rate and was confirmed for another term.
During the entire game, I tried to keep unemployment and inflation stable. I payed attention to the news clippings, and I adjusted for what is happening in the news. It was pretty difficult to maintain inflation. Once unemployment would stabilize, inflation would worsen. I was very unsuccessful in the game. Unemployment rate was okay, but inflation was awful. Monetary policy is extremely difficult.
Vanessa Marcano
Period 2
Nicole Aguilar
Period 4
It took a while for me to finally win this game. I struggled the first few times trying to maintain balance with unemployment and inflation and I failed several times, but when I finally won I had come up with a clear-cut strategy. So for around the first time, I kept the status quo for one round, but when inflation was rising, I raised the funds rates to about 7 or 8, which lowered inflation immensely but gave a rise to unemployment. When that happened, I set the funds rate to 1.25 to loosen the economy and give rise to a little bit of inflation. I would keep it steady for a while, and then it was rinse and repeat. If inflation was shown to be going high, I raised funds higher than normal, but when things looked balanced I stayed at about 4.00 % so it would stay that way. In the end, it's all about keeping the balance between the two things.
Reem Abdelmajid
6th period
My strategy was to try to keep inflation and unemployment at a natural rate. I tried to pay attention the news and act accordingly. Unfortunately it did not work out that well for me and I could not keep everything steady.
Lloyd Videau
6th Period
As my objective was to keep inflation and the unemployment rate of the economy around the natural rate. I realized it is pretty difficult to do well in the game during the first four quarters as my goal was getting further from where i would of liked it. How ever after not changing the federal fund rate much for remainder of game i got closer to where it started. So in thew remanding twelve quarters i fixed thew economy to where it was pretty stable.
The main strategy I used was to base my adjustments according to the news hints. My first time was to let it go without any changes. Then I raise interest rates based on the hints and my limited knowledge of monetary policy. However, I was unsuccessful.
This game was not easy to play, given my limited knowledge on monetary policy and how the economy works. I was mostly successful in the game at first and kept unemployment and inflation rates under control. My strategy was to increase the rate when unemployment decreased and inflation increased, and vice versa, which seemed to be effective. Yet halfway into the game, both rates ended up going in the opposite direction I wanted them to go, and as I tried to return unemployment to u=5%, the inflation rate continued to rise regardless of how high or low I adjusted the rate to be. I ended up with u= 2.12% and inflation at 6.25%. Overall, though the Federal Reserve is sometimes criticized for being incompetent, through this game, I realized that their work and effort is often underappreciated. The responsibilities they are given can affect the country or even the world, and with so many uncertainties in our economy, the decisions they make are not easy at all.
2nd Period
The game was very hard because it was hard to tell how the increasing the rate would affect unemployment and inflation. At first I started with 4% and just changed it by small margins. But then I increased it a lot to reduce the inflation. But the inflation got to a point where it was negative so I had to reduce the rate a lot to increase inflation again. At the same time unemployment dropped. At the end I still failed.
Milen Thomas
6th period
My approach at first was to adjust the rate every quarter in hopes of keeping the inflation and unemployment rates consistent, yet it wasn't as successful as I hoped for it to be. Instead, unemployment skyrocketed and the inflation rate plummeted, leading the economy to deflation. To alleviate the situation, I lowered my fed funds rate all the way down to 1.25%, and decided to keep the rate stable as a "see and wait" strategy. At the end of the game, my u=5.20% and inflation rate = -1.07%, which wasn't completely satisfactory. I realize that even with so many fluctuations in the economy, the Fed's rate serves as an important prediction for the economy, and the rates need to be constant to ensure consumer confidence.
Period 4
After a few games of getting used to the controls and adjusting my predictions, I was able to keep the unemployment rate at 4.80% and inflation at 2.01%. The way I did it was to keep an eye on how fast the rates grew and adjusted the Fed funds rate as needed. For my first tries, I was very hesitant. Inflation skyrocketed and the unemployment rate dropped to its limit, 1.50%. I raised and dropped the funds too steeply on my next game, which led to a major disaster. Unemployment went way up as inflation rates dropped significantly and stopped at 3.00%, the limit for inflation the game can allow. It was on my fourth game that I understood what to do. For my first GO, I left the rate untouched. I adjusted the rates as needed. Soon after, a crisis hit and unemployment plummeted and inflation jumped. I raised the rate to 10.00 and diluted the impact of the crisis. After seeing results, I brought down the rates to fix the economy. From there, it was all about maintaining unemployment and inflation well separated and close to their rightful target lines. The game was very interesting and fun while it lasted.
Anu Thomas
2nd Period
My apporach at first was to keep the Federal Funds rate at about 3. 5% to see how the econoomy would react. At first, the unemployment was low with a 3.5% Federal Funds rate but the inflation rate was above 2.0% and close to reaching 3.0%. Then I tried to increase the federal funds rate by .25% every quarter to see how the economy would react in the hopes that inflation would then decrease with a higher federal funds rate. However, the inflation rate continue to increase. As a result of my flucuating federal funds rates and high inflation, I had a housing market crash during my term. I decided to switch up my strategy by lowering my federal funds rate back down to 3.5% and keeping it at that rate for 4 terms. Inflation decreased but it decreased so much so that my inflation actually became negative, reaching -.15% although the federal funds rate was lower. The unemployment rate was lowering buy only slowly so. I lowered my federal funds rate to 3.25% for the last two terms to see if I could make the unemployment rate lower faster but I ended the game with an inflation rate of -.12% and an umemployment rate of 5.64%, which was above the desired 5% umployment.
This game was difficult because of my lack of experience in the field of economics. I just changed values until all seemed to be in equilibrium. This method, however, worked only for the first few quarters. After a while, inflation and unemployment began to move drastically in opposite directions. As a result, I ended up losing with 3% unemployment and inflation. This helped me realize the difficulty in adjusting interest rates to bolster the economy's health and keep rates constant.
Nima Jamshidi
Period 2
I had to play the game a couple times to understand the mechanics effectively. In my final run, I ended up having a somewhat stable unemployment rate. However, my inflation rate was actually negative. I tried to just react to the new data each time the game paused, but after a while the inflation rate just got out of a control and was too negative for me to bring it back. I tried to follow the instruction in the game but somehow the inflation rate went crazy and I could not bring it back.
Namisha Mithani
P.6
The game was very challenging for me since I have limited knowledge about monetary policy and the economy. Before the game started it stated to keep unemployment close to 5% and inflation 2%. As I progressed throughout the game, the economy's inflation rate was 11.19% percent which was definitely not good. Though, I managed to keep the unemployment rate at 1.50%.
Tess Matzakos
Period 2
This game was very challenging because it seemed almost impossible to keep the unemployment and inflation rates at a stable rate. I tried to keep it the rates under control by following the news headings and hints, and then changing the factors, however this strategy ultimately proved unsuccessful because inflation kept rising regardless. Whenever I tried to fix inflation by changing the interest rate it increased unemployment which was also bad. Although I didn't do well in this game it helped me learn the difficulties of dealing with monetary policy in the federal reserve.
It took me a couple of tries until I felt that I was really comfortable with the workings of the game. I was able to keep the unemployment rate relatively steady at around 6% over the course of multiple games. However, I was never able to keep a steady inflation rate; sometimes my inflation rate would be around 3% in some of my runs but it would end up negative on some of my others. The game itself was quite difficult to grasp, but it was still quite interesting overall. Unfortunately, I was sacked after each of my terms.
Gabrielle Le
Period 6
The game was a bit confusing to understand at first. But after looking at the instructions and replaying the game a couple of times, I kind of got the hang of it. However, the game would throw stock market crashes and other surprises that would spike unemployment that were really hard to fix with just monetary policy. The game's headlines were helpful in telling me the state of the economy, but sometimes it just made me feel bad when I was doing poorly. The game overall was fairly interesting and educational about monetary policy and the Federal Reserve.
In my experiences in playing the mock fed chairman game, there were many times where either the unemployment rate or the inflation rate went out of control where one stayed relatively stable and the other one fluctuated wildly. Even though I changed the federal interest rate as based on how the rates dipped or soared, there was always a point in time where the rates kept on dropping or rising no matter how low or high I cranked the interest rate. It was like it was stuck in a vicious cycle that accelerated as it went on. The news headlines did sometimes help me decided what to do next, but most of the time, I changed something that I maybe shouldn't have and caused something to spiral out of control.
-6th
I tried to keep unemployment low, and steady. Also, I looked at news trends and changed factors due to what they said.
The game didn't work well for me & I couldn't maintain anything.
Period 4
The game gives the players current events that happen in the economy as the players predict the result and react to the situation. While being in control of the Federal fund rate and balancing the unemployment rate and the inflation rate, the game is really educational while helping the students learn about monetary policy and have a better understanding in how the current events can impact the economy.
My strategy was to watch for the news and react accordingly. I was thinking in terms how of expansionary and contractionary policy. If the unemployment was low but inflation was high, I increased the Feds fund rate in order to decrease the amount of money in the economy. But if inflation was low and unemployment was high, I decreased the fed fund rate to speed up the economic. Overall, my actions usually made matters worse and sometimes had the opposite intended effect. Controlling the economy is a difficult job.
Kendall Truong
Period 2
I adjust the the fed funds rate in hopes to maintain the rates of unemployment, Fed funds rate, and inflation to its natural state. When I first started, it was complicated as mostly the inflation rate was unpredictable as it either rose or decreased significantly based on current events of the economy. I would experiment with increasing or decreasing Fed funds rate to see how it would affect the economy. The News Brief that the game mentions helps me with whether I should increase or decrease the fed funds rates.
Kendall Truong
Period 2
I adjust the the fed funds rate in hopes to maintain the rates of unemployment, Fed funds rate, and inflation to its natural state. When I first started, it was complicated as mostly the inflation rate was unpredictable as it either rose or decreased significantly based on current events of the economy. I would experiment with increasing or decreasing Fed funds rate to see how it would affect the economy. The News Brief that the game mentions helps me with whether I should increase or decrease the fed funds rates.
Period 6
My strategy consisted of raising the fed rates when the inflation and unemployment began to converge in the middle and return the rates to the original value as the economy stabilized. I ended the game an unemployment rate of 4.78% and 2.8% inflation
Erica Wong
Period 2
My strategy was to just be reactionary to the news and raise fed rates and adjust it when I deemed necessary. However, that turned way against me, and unemployment skyrocketed, I sent the economy into the worst recession its ever seen, and I ruined the lives of millions of Americans. Inflation ended at 1.03%. I now feel sorry for those working in the FEderal Reserve.
Per.2
It took me a few tries to get a hold of this game and what the true concept of it was. I followed the simple strategy of looking at the news and deciding whether or not to raise the federal funds rate. even after playing it a few times, the game did not work out very well, the inflation went negative and the unemployment rate was above 6%. this game is very informative and helped me learn more about monetary policy.
Ryan Hunter
6th Period
My strategy was to move the federal funds rate against the trendline. For example, when a random event caused unemployment to skyrocket and inflation to plummet, I decreased the federal funds rate. When conditions normalized, I slowly moved the funds rate back up. This was done in an attempt to prevent over correction. At the end of the game, I managed to obtain both low unemployment and inflation rates
Period 6
In this game, I struggled with trying to keep inflation and the unemployment rate consistent. The first time I played, the unemployment rate and inflation rate kept moving away from the goal line. Eventually, I was able to get the hang of the game by learning to manipulate the federal funds in the right ways. Also, paying attention to the news headlines helped me guide how much of the federal funds I should increase or decrease. Using the news headlines was the best strategy that helped me
At first i was messing around and made inflation and unemployment cross ways by making the fed funds rate too high. So then i started over and started altering the fed funds rate based on the new and that pretty much did the job. If the line went upwards, i lowered the rate and vice versa. Also, i didnt make any sudden fund rate changes, every action was taken at ease.
Hannah Enyioma 6th
This game was difficult because it was a struggle to keep inflation down and keep unemployment in check. I started by raising the fed fund rate for the first to quarters then lowering it for the next two quarters. In doing that, the interest rate was on a steady incline. However, for the first quarter the unemployment rate was on decline, then during the second quarter in rose slightly. After the dramatic drop in the fed funds rate, the unemployment rate dropped dramatically. I found it best to follow the news as well, especially concerning the housing market.
My strategy was to try to keep inflation and unemployment at a natural rate. I tried to pay attention to the news and base my actions on that. Unfortunately it did not work out that well for me and I could not always keep everything steady.
The strategy i used while playing the game was to make sure that the inflation rate did not rise too high. I made sure inflation did not rise by keeping interest rates fairly high. My actions led to deflation and a pretty good inflation rate. Then, i lowered my interest rates, and slowly the inflation rate went up and the unemployment rate went back down. My goal in the game was to keep everything as stable as possible. Unemployment was not that hard to stabilize but inflation rates were difficult. I feel like i should have paid more attention to the headlines.
Zain Bhai
Period 2
JOhn abraham
Period 6
The strategy i used while playing the game was to make sure that both unemployment rate as well as inflation rate remained stable. When The inflation rate became to high i decreased the Fed fund rate which in turn lead to a decrease in inflation rate. while Unemployment rate was a very easy to manipulate the inflation rate moved at a very slow pace. Making sure inflation rate didnt get to high was a high concern for me in order to get reappointed
It was difficult to manage the inflation rate. The unemployment rate was easy to regulate. First I lowered the unemployment rate which caused the inflation rate to go up. It is hard to balance the inflation and unemployment. Both have to be close, because a low inflation rate will cause higher unemployment. The relationship is inverse.
This game was kinda weird at first but after trying different options I finally figured out a method to manage the inflation rate. When inflation went down because of a change I decreased the FED funds rate. But when I began to notice that is was slowly shifting to equilibrium I started to use the fed by increasing the amount of money supply. After I noticed the inverse relationship I began to have a better understanding on how to keep inflation and the unemployment balanced
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