Today, I will share the Fed Chairman game where you will assume the role of the US Fed Chairman. Interest rates are a lever in the hands of the central bank as they strike a balance between inflation and growth (which has an impact on unemployment). Here you will get to handle interest rates and see the effect on the economy. It is a fun way to understand these dynamics.
You must be aware that there is a big debate going on in India with industry groups and the finance minister, Chidambaram, putting pressure on the RBI governor to reduce interest rates. What they forget is that inflation shows no signs of abating and is badly hurting the common man. What you will see in the Fed Chairman game is mostly the same all over the world for any central banker. It is a tough job satisfying politicians and looking after the economy.
Here is the link to the Fed Chairman Game. Click here.
You might have missed reading some interesting articles at Capital Orbit which explained government finances and fiscal deficit in India.