Play the Fed Chairman Game

[NobleSavage]

This is fun

http://sffed-education.org/chairman/

 

[boneyard bill]

This is fun

http://sffed-education.org/chairman/

It more or less presupposes a direct trade-off between unemployment, inflation, and the federal funds rate. And the federal funds rate is a short term rate. Moreover, it isn't even a rate the Fed controls directly. The Fed controls the discount rate. I fear this isn't simply an oversimplification of the system. It has it all wrong, but it probably is in line with mainstream thinking on the subject insofar as we can even talk about a mainstream anymore.

 

[laughing dog]

It more or less presupposes a direct trade-off between unemployment, inflation, and the federal funds rate. And the federal funds rate is a short term rate. Moreover, it isn't even a rate the Fed controls directly. The Fed controls the discount rate. I fear this isn't simply an oversimplification of the system. It has it all wrong, but it probably is in line with mainstream thinking on the subject insofar as we can even talk about a mainstream anymore.

Historically, the Federal Reserve has been able to move the Federal Funds rate to its target very quickly.