Simulation of FOMC Meeting: Learning About Monetary Policy by Doing

18 Pages Posted: 24 Mar 2005  

Hiranya K. Nath

Sam Houston State University - College of Business Administration - Department of Economics and International Business

Date Written: February 2005

Abstract

This paper describes a classroom simulation of the FOMC meeting designed for an upper-level monetary economics class. This is a role-playing exercise in which students are assigned various roles as individuals or as groups that directly or indirectly participate in the FOMC meeting and in the conduct of monetary policy. As the semester progresses, lectures explain central banking, monetary policy making and effects of money supply in the economy. Concurrently, the students research different aspects of the U.S. economy and prepare the green book, the blue book and the beige book. By the end of the semester, the FOMC meets and deliberates over the information gathered by various groups, determines the course of the overall economy and takes a decision on the monetary policy action.

Suggested Citation

Nath, Hiranya K., Simulation of FOMC Meeting: Learning About Monetary Policy by Doing (February 2005). Available at SSRN: https://ssrn.com/abstract=687422 or http://dx.doi.org/10.2139/ssrn.687422

Hiranya K. Nath (Contact Author)

Sam Houston State University - College of Business Administration - Department of Economics and International Business ( email )

SHSU Box 2118
Huntsville, TX 77341-2118
United States

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