Characterize the main functions of the U.S. Federal Reserve.
Each member of the Learning Team completes the Federal Reserve Simulation which will help you to evaluate central banking monetary policy and its stabilizing affect on the domestic economy and other countries.
Take notes on the outcomes that resulted in your decisions. Next, each member of the Learning Team will compare notes after the completion of the simulation.
Write a recommendation paper of no more than 1,400 words with your team's recommendation to the Fed about their monetary policy. In this paper, please address the following questions:
How would you characterize the main functions of the U.S. Federal Reserve?
What are the main tools that the FED uses for policy purposes?
What are the limitations?
What is the current course of monetary policy? What is the policy likely to be in the near future?
If you are the manager of a large global energy company, how does Federal Reserve policy affect you, and how would you adjust strategic decision-making as a result?
Finally, comment on the appropriate strategic decisions for a global energy company in light of the monetary policy followed by the FED. Also, address how such a firm might have to adapt to changing currency prices, global trade flows and capital investments in the monetary and financial system.