The Federal Reserve Beige Book Challenge
Summary
This activity requires that students get familiar with the Federal Reserve Beige Book, and utilize what they've learned about determinants of economic growth to judge which district(s) may have the greatest percentage increase in their contribution to real GDP. This exercise is formatted as a competitive debate to determine district rankings.
Context for Use
This activity was designed for principles courses, though it may also be used for more nuanced discussion of economic growth factors. The activity is intended for class sizes of 25 to 50 students as this allows for time limitations typical of 1 1/2 hour class sessions.
Student Handout 1 Beige Book (Microsoft Word 2007 (.docx) 7kB Nov27 19)
Student Handout 2 Beige Book (Microsoft Word 2007 (.docx) 7kB Nov27 19)
Overview
This activity requires that students get familiar with the Federal Reserve Beige Book, and utilize what they've learned about determinants of economic growth to judge which district(s) may have the greatest percentage increase in their contribution to real GDP. This exercise is formatted as a competitive debate to determine district rankings.
Expected Student Learning Outcomes
In this activity students will critically evaluate factors influencing economic growth. Additionally, they will become familiar with the Federal Reserve Beige Book.
Information Given to Students
See handouts
Student Handout 1 Beige Book (Microsoft Word 2007 (.docx) 7kB Nov27 19)
Student Handout 2 Beige Book (Microsoft Word 2007 (.docx) 7kB Nov27 19)
Teaching Notes and Tips
This exercise may take place over two or three class sessions.
Preparation for Class Session #1:
The class will be broken into teams divisible by six ( for example, 6 or 12 teams) and assigned to compare and contrast the economic health of the two Federal Reserve districts assigned to the team via data in the Federal Reserve's latest Beige Book. The team's task is to determine which of the two districts assigned to the team will likely have the greatest percentage gain in their contribution to real GDP for the upcoming year. Only data in the latest release of the Federal Reserve Beige Book may be used for this analysis. (Note: this is not a measurement of greatest amount of real GDP, but rather the largest percentage gain in their existing contribution to real GDP. In other words, which district will see the greatest improvement in their current economic situation?)
The link to the Federal Reserve Beige Book is found at: https://www.federalreserve.gov/monetarypolicy/beige-book-default.htm
Your team should use what they've learned about macroeconomics and in particular what they've learned about households (Personal Consumption Expenditures), firms (Gross Private Domestic Investment), government (Government Purchases), and net exports (Exports - Imports) to "make the case" for the district they select. Once selected, the district will now be represented by the team for Class Session #2.
Team 1: Boston and New York
Team 2: Philadelphia and Cleveland
Team 3: Richmond and Atlanta
Team 4: Chicago and St. Louis
Team 5: Minneapolis and Kansas City
Team 6: Dallas and San Francisco
Class Session #1 (15 minutes)
Your team will compare notes taken while preparing for Class Session #1 to determine which of their assigned districts is believed to have the larger percentage gain in their existing contribution to real GDP. The team will now become this district for class session #2.
If teaching a large class size with multiples of each team (two or more team ones, two or more team twos, etc.), include this step:
In this class session teams will pair up and "battle" for the best district. Teams will be paired up to compete in this order:
Team 1 vs. Team 1
Team 2 vs. Team 2
Team 3 vs. Team 3
etc.
Each team has no more than five minutes to "make their case" to the class for why they will have the larger percentage gain in their existing contribution to real GDP. At the end of both five minute sessions (both teams have had a change to "make their case"), the remainder of the class will vote for the winning team (aka dominant district.) The winning team will go on to compete in Step One of Class Session #2
Class Session #2:
Step One (40 minutes)
In this class session teams will pair up and "battle" for the best district. Teams will be paired up to compete in this order:
Team 5 vs. Team 2
Team 3 vs. Team 4
Team 1 vs. Team 6
Each team has no more than five minutes to "make their case" to the class for why they will have the larger percentage gain in their existing contribution to real GDP. At the end of both five minute sessions (both teams have had a change to "make their case"), the remainder of the class will vote for the winning team (aka dominant district.)
Step Two (50 minutes)
The three winning district teams will have ten minutes to review their notes, consider the comments of the other winning team, and modify their "case" for being the best district within their team. After this ten minute session, each team will again have five minutes to "make their case" to the rest of the class for having the greatest percentage increase in real GDP likelihood for the upcoming year. The remainder of the class will vote for best district team.
The three losing district teams have been offered an award for economic stimulus money by the federal government. The teams have ten minutes to come up with the most creative and effective plan for stimulating the specific economy of their district. Each team will then have up to five minutes to make their pitch for economic stimulus for their district. The remainder of the class will vote for the winning stimulus award team.
Suggestion: grading or bonus points earned per step accomplished.
Preparation for Class Session #1:
The class will be broken into teams divisible by six ( for example, 6 or 12 teams) and assigned to compare and contrast the economic health of the two Federal Reserve districts assigned to the team via data in the Federal Reserve's latest Beige Book. The team's task is to determine which of the two districts assigned to the team will likely have the greatest percentage gain in their contribution to real GDP for the upcoming year. Only data in the latest release of the Federal Reserve Beige Book may be used for this analysis. (Note: this is not a measurement of greatest amount of real GDP, but rather the largest percentage gain in their existing contribution to real GDP. In other words, which district will see the greatest improvement in their current economic situation?)
The link to the Federal Reserve Beige Book is found at: https://www.federalreserve.gov/monetarypolicy/beige-book-default.htm
Your team should use what they've learned about macroeconomics and in particular what they've learned about households (Personal Consumption Expenditures), firms (Gross Private Domestic Investment), government (Government Purchases), and net exports (Exports - Imports) to "make the case" for the district they select. Once selected, the district will now be represented by the team for Class Session #2.
Team 1: Boston and New York
Team 2: Philadelphia and Cleveland
Team 3: Richmond and Atlanta
Team 4: Chicago and St. Louis
Team 5: Minneapolis and Kansas City
Team 6: Dallas and San Francisco
Class Session #1 (15 minutes)
Your team will compare notes taken while preparing for Class Session #1 to determine which of their assigned districts is believed to have the larger percentage gain in their existing contribution to real GDP. The team will now become this district for class session #2.
If teaching a large class size with multiples of each team (two or more team ones, two or more team twos, etc.), include this step:
In this class session teams will pair up and "battle" for the best district. Teams will be paired up to compete in this order:
Team 1 vs. Team 1
Team 2 vs. Team 2
Team 3 vs. Team 3
etc.
Each team has no more than five minutes to "make their case" to the class for why they will have the larger percentage gain in their existing contribution to real GDP. At the end of both five minute sessions (both teams have had a change to "make their case"), the remainder of the class will vote for the winning team (aka dominant district.) The winning team will go on to compete in Step One of Class Session #2
Class Session #2:
Step One (40 minutes)
In this class session teams will pair up and "battle" for the best district. Teams will be paired up to compete in this order:
Team 5 vs. Team 2
Team 3 vs. Team 4
Team 1 vs. Team 6
Each team has no more than five minutes to "make their case" to the class for why they will have the larger percentage gain in their existing contribution to real GDP. At the end of both five minute sessions (both teams have had a change to "make their case"), the remainder of the class will vote for the winning team (aka dominant district.)
Step Two (50 minutes)
The three winning district teams will have ten minutes to review their notes, consider the comments of the other winning team, and modify their "case" for being the best district within their team. After this ten minute session, each team will again have five minutes to "make their case" to the rest of the class for having the greatest percentage increase in real GDP likelihood for the upcoming year. The remainder of the class will vote for best district team.
The three losing district teams have been offered an award for economic stimulus money by the federal government. The teams have ten minutes to come up with the most creative and effective plan for stimulating the specific economy of their district. Each team will then have up to five minutes to make their pitch for economic stimulus for their district. The remainder of the class will vote for the winning stimulus award team.
Suggestion: grading or bonus points earned per step accomplished.
Assessment
Follow up question:
Given what you've learned in this exercise, what do you believe will be the outlook of the Federal Open Market Committee at their next meeting? What recommendations do you think the FOMC will make regarding interest rates?
Given what you've learned in this exercise, what do you believe will be the outlook of the Federal Open Market Committee at their next meeting? What recommendations do you think the FOMC will make regarding interest rates?
References and Resources
https://www.federalreserve.gov/monetarypolicy/beige-book-default.htm