02
Sep
2009
Don’t Hate Bernanke, Hate the Game
Von Pepe sends me this hilarious simulation on the SF Fed’s website. As von Pepe notes in his email, this is basically the Phillips curve with sound effects.
I got fired after my first term as Fed chief. At the first opportunity, I jacked the fed funds target up to 19.0% (the highest setting) and just let it ride. Unemployment had risen to something like 19.4% by the time my term expired (and I was not reappointed). I was expecting the ants in my colony to get used to the 3% deflation (I think that’s the floor), at least after two straight years of it. But nope, unemployment just kept going up and up and up.
This game is really hilarious. You have to click the link above.
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