Monetary System
Description
The Federal Reserve controls the money supply through monetary policy actions.
For this discussion, first play the simulation game Chair the Fed (on the Federal Reserve of San Francisco website). Here is the link:
You may play the simulation as many times as you wish.
In your initial post, include an image of your simulation report. Then address the following:
- Share your experience as the chair of the Fed, addressing the challenges you faced and how you dealt with them. How did your changes to the federal funds rate affect the unemployment rate in your simulation? Explain the relationship using information from the textbook.
How did your changes to the federal funds rate affect the inflation rate in your simulation? Explain the relationship using information from the textbook.
