Federal Reserve Project
1. Watch the Federal Reserve Board and the Federal Open Market Committee (FOMC), to evaluate the effects of changes in the fed funds rate.
2. Evaluate changes in macroeconomic indicators underlying changes in Fed policy.
Prepare your report according to these instructions.
There is no exact format for your paper; it must be neat and organized. Prepare six to eight pages of text in a typed report, double-spaced. Include additional pages for any graphs you choose to use. Include a summary paragraph at the end of your paper. Proofread your paper and check for spelling errors, punctuation errors, and grammatical errors.
You are expected to show that you have thought about how the Fed works, interpreted the economy as a basis for discussing Fed action, and that you have tied together important points that you have learned. Use the following points as a guide.
• Summarize Fed decisions concerning the fed funds rate over the period of approximately a year before the date you complete your project.
• Show that you understand how the Fed operates.
• Discuss what you think the Fed is going to do in the near-term future (the next six months or a year). What policy changes do you think the Fed will make during that time period? Why? (Use macro indicators as a basis.)
• Briefly summarize changes in FOMC decisions concerning the fed funds rate over the period of approximately a year before the date you complete your project.
• Describe the economy in terms of changes in major macroeconomic variables such as unemployment, Gross Domestic Product, inflation, and other variables you think are important in describing the conditions facing the Fed as it made its decisions.
• Evaluate the economy in your own words, demonstrating that you have some understanding of basic macroeconomic aggregate demand/aggregate supply analysis. Focus on your opinions and conclusions, not on what others have said. You can find numerous web sites for global data on trade, exchange rates, and other information; however, do not just copy some data out of printed media or off the Internet.
Give credit to all data sources. You might include a general reference section. Cite all paraphrased and quoted comments; all statements and interpretative analysis borrowed from someone else must be cited. If your data and information come from one source, you need not cite the source of each number, but make a general statement about the source.
You will submit your completed assignment electronically through the course. For information on saving and submitting your assignment, please see the syllabus.
Federal Reserve Project