Federal Reserve Chairman Game and Reflection Paper

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Play the Game
In the class, we have been taught that the major goals of monetary policy are ensuring reasonable price, high employment rate, and economic growth. The Fed basically uses four different tools to achieve these monetary policy goals: open market operations, interest on every reserve, the discount rate and reserve requirements. While playing the Fed Chairman Game (FCG), I got to know that it is an interactive way to allow people to understand the impact of the Federal Funds Rate on inflation and unemployment. At the end of this game, the chairman is reappointed if they did not bring inflation to a low level and had failed to meet the unemployment target in the previous turn. In order to show the use of monetary policy, the game had put me in the position of the Fed Chairman, and I was to manipulate interest rates so that inflation and unemployment could be balanced. Decisions are challenging to make as they will either have a negative effect or a positive impact on the economy. The Fed Chairman Game is a perfect example of monetary policy, as it allows us to control what is going on with the economy and teaches us how to act as a player who can make changes. For some moments, I felt that I had full control over the monetary policy and could do anything to strengthen the economy.
It’s safe to say that unforeseen circumst...