Brent Holt

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Ivy Tech Community College

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Then and Now - Evolving Fed Response to the Financial Crisis part of Starting Point: Teaching and Learning Economics:Starting Point: Economics in Two-Year Colleges:Activities
Students will first play the Fed Chairman game (online simulation) adjusting the Federal Funds Rate and targeting desirable unemployment rates using one of the traditional traditional tools of Fed policy to achieve the goals of growth with price stability and employment. After playing the game, students will read a presentation from the SanFrancisco Federal Reserve Bank CEO outlining new Fed policy with the consideration that manipulating the federal funds rate is no longer an option in the foreseeable future. How can the Fed effectively stimulate the economy without its most visible and effective policy lever? Play the following Fed Chair Game simulation, and read the recent presentation from the San Francisco Federal Reserve Bank CEO in order to gain insight into traditional policy, and newer policy responses given current economic conditions.