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Beat the Fed

30 pointsby Kopionover 9 years ago

6 comments

srmannover 9 years ago
This &quot;game&quot; seems to allow me to modify the outcome of the Fed&#x27;s policies, and not the inputs. Unless it&#x27;s advocating price controls as a means to economic prosperity, I don&#x27;t see the relevance.<p>Am I missing something here?
akuma73over 9 years ago
Perhaps I am economically naive, but why does there need to be any inflation? Why isn&#x27;t 0 a target?
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nicolasehrhardtover 9 years ago
&quot;Fed’s goal: get the U.S. inflation rate to 2%&quot;: This is partially true, since the Fed&#x27;s goal is also to maximize employment[1]. So really, they should add employment rates in these different categories as well. Which makes the job even harder.<p>In fact, balancing the two was thought to be a very hard job in theory, almost impossible. And that&#x27;s why the EU central bank mission _is_ to only stabilize inflation and let each country focus on employment. (it&#x27;s less and less true because of pressure from EU countries such as France and Italy).<p>[1] <a href="http:&#x2F;&#x2F;www.federalreserve.gov&#x2F;aboutthefed&#x2F;mission.htm" rel="nofollow">http:&#x2F;&#x2F;www.federalreserve.gov&#x2F;aboutthefed&#x2F;mission.htm</a>
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hammockover 9 years ago
At first glance, had no idea what I was supposed to do or how it worked. At second glance, it seems like you&#x27;re just setting price inflation on a number of components, trying to get the weighted average to be 2%. Wildly overhyped &quot;game&quot;?
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nlover 9 years ago
This &quot;game&quot; is stupid because it doesn&#x27;t do anything at all to show the trade offs.<p>As a gross generalization:<p>Higher Growth -&gt; Higher Employment -&gt; Higher Inflation<p>High Inflation -&gt; Negative Income Growth (for those on low wages and fixed incomes) -&gt; Risk of Recession and&#x2F;or Social Disruption<p>Lower Growth -&gt; High Unemployment -&gt; Risk of Recession and&#x2F;or Social Disruption<p>Put those parameters in and the &quot;game&quot; gets interesting. At the moment it&#x27;s just pointless.
jessaustinover 9 years ago
It&#x27;s about time somebody did...