FOMC SIMULATION
The Federal Open Market Committee (FOMC), made up of the seven members of the Board of Governors and the presidents of the 12 Federal Reserve Banks, is the Fed's most powerful monetary policy-making group.Meeting eight times a year, the FOMC discusses current and near-term economic and financial conditions, prior to making a decision to raise,lower or keep short-term interest rates the same.
YOUR TASKS:
A. Assign roles:
*1 Chairman of the FOMC (Chairman of the Federal Reserve)
*1 President of Federal Reserve Bank of New York (vice chairman of FOMC)
*10 Economist-advisors (each gives part of presentation listed below)
*6 Members of the Board of Governors
*remaining students will be Reserve Bank Presidents
B. Research and Prepare reports according to roles assigned
(see below)
C. Conduct simulated FOMC Meeting
REPORTS/DUTIES
CHAIRMAN and VICE CHAIRMAN: Make a recommendation as to what type of monetary policy to pursue; moderates FOMC meeting
ECONOMIST-ADVISORS: make shared presentation, including:
*an analysis of current economic conditions;
*a discussion of prospects for economic,financial and international conditions for the near future;
*an identification and discussion of economic issues of special concern at the present time or in the near future
*a recommendation as to whether short-term interest rates should be raised, lowered or kept the same.
EACH GOVERNOR AND BANK PRESIDENT: makes a recommendation
regarding the direction for short-term interest rates,or the implemetation of other forms of monetrary policy ; casts a vote regarding the direction for monetary policy, with the decision going to the majority
TIME TABLE: CHECKPOINTS: tbd
FOMC MEETING scheduled for Wednesday, 16 January 2002
Meeting Agenda:
Agenda for the Simulation
1. Chairman calls the meeting to order.
2. Economist advisers presentation, including:
---an analysis of current economic conditions;
---a discussion of prospects for economic, financial and international conditions for the near future;
--- and an identification and discussion of economic issues of special concern at the present time or in the near future a recommendation as to whether short-term interest rates should be raised, lowered or kept the same.
3. Chairman offers recommendation regarding the direction for short-term interest rates
4. Each Governor and Bank President makes a recommendation regarding the direction for short-term interest rates
5. Each of the seven members of the Board of Governors and the five Bank presidents casts a vote regarding the direction for interestrrates, with the decision going to the majority
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Rubric for grading reports:
Preparation
--use of allotted work time
--readiness at meeting time
Performance/presentation
--participation in FOMC
--quality of presentation
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