Fed Chairman Game

The following “educational” interactive game is provided by the Federal Reserve Bank of San Francisco: Fed Chairman Game.

Deflation!!! Oh Noes!!!

Oh my God, these people are morons.  This game was funny at first, but now it's just depressing.  I set the FFR at 0% at apparently imports are being hurt by a strong dollar.  And when I set the FFR at around 8% and inflation was - 3% the economy was apparently shrinking.

 

I was hoping it would be Whack-a-Bernanke.

lol I kept the rate steady at 13%, inflation eventually went to zero but at the same time but I kept seeing newspapers that said "Oil prices rising! Jobs vanish as inflation lowers!" and unemployment is at 9%.  Aren't oil prices rising with unemployment at 9% or higher right now in reality?

I set the FFR at 19%. I got sacked in the end of the game for causing deflation and mass unemployment.

I set the FFR at 19%. I got sacked in the end of the game for causing deflation and mass unemployment.

Interest rates above market equilibrium have just as much of an effect in creating intertemporal discoordination and maluse of capital as do those below market rate. As such, the mass unemployment and deflationary concerns of the fed game are justified, even in the context of standard rothbardian/hayekian analysis.

Interest rates above market equilibrium have just as much of an effect in creating intertemporal discoordination and maluse of capital as do those below market rate. As such, the mass unemployment and deflationary concerns of the fed game are justified, even in the context of standard rothbardian/hayekian analysis.

Actually, raising the FFR to such heights effectively neutralizes monetary policy.  It's like setting minimum wage to $0.01/hour.

Actually, raising the FFR to such heights effectively neutralizes monetary policy.  It's like setting minimum wage to $0.01/hour.

Do you have any links that flesh this out in greater detail?

I got unemployment to 19%. I guess we need the Federal Reserve after all!

I got unemployment to 19%. I guess we need the Federal Reserve after all!

The lesson I've learned from this exercise is that without the Federal Reserve, America is doomed to either massive unemployment or massive inflation.  Thanks, poorly-constructed Flash game!  Without you, I'd still be an Austrian jumping at shadows on a cave wall.