Laura Wind-Norton

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Nicolet College

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Activity

We Buy Anything: an in-class activity demonstrating the Fed's response to the financial crisis of 2008 part of Starting Point: Teaching and Learning Economics:Starting Point: Economics in Two-Year Colleges:Activities
This activity engages students and underscores how quickly and dramatically the Federal Reserve System responded to the financial crisis of 2008. By having students assume the role of various economics players: from commercial banks to foreign governments, this activity highlights how the Fed's operations changed during the crisis. Since the crisis and the adoption of a 0% Federal Funds Rate target, the Fed has shifted toward 'balance sheet' policies.