🏛️ FREE INTERACTIVE GAME
Federal Reserve
Simulator
Step into the shoes of the Fed Chair. Set interest rates, manage inflation, and navigate economic crises. How well can you steer the economy?
Choose a Historical Scenario
📚 Learn Monetary Policy
💰 How Rate Changes Affect You
When Rates Rise
Mortgages, loans, and credit cards become more expensive. Savings accounts earn more interest.
When Rates Fall
Borrowing becomes cheaper, encouraging spending. Savings earn less, but stocks may rise.
What is the Federal Reserve Simulator?
The Federal Reserve Simulator is a free interactive game that puts you in the role of the Chair of the Federal Reserve. Make real monetary policy decisions — setting interest rates, issuing forward guidance, and deploying quantitative easing — while navigating historical economic crises like the 2008 Financial Crisis, COVID-19 pandemic, the Dot-Com Bubble, and 1970s Stagflation.
Our simulation uses a simplified IS-LM-PC economic model calibrated to real US economic data. Every decision you make affects GDP growth, unemployment, inflation, consumer confidence, and the stock market. The challenge? Balancing these competing forces to achieve stable growth with low inflation and low unemployment — the Fed's dual mandate.
How to Play
Choose a Scenario
Select from historical economic crises with unique conditions.
Set Interest Rates
Adjust rates each quarter. Raising fights inflation but slows growth.
Deploy QE & Guidance
Use forward guidance and quantitative easing when needed.
Get Your Score
After 12 quarters, see how well you managed the economy.
Key Concepts
Federal Funds Rate
The Fed's primary tool for influencing the economy.
Quantitative Easing
Asset purchases to lower long-term rates.
Dual Mandate
Maximum employment and 2% inflation target.
Phillips Curve
Trade-off between unemployment and inflation.
FAQ
What is the Federal Reserve Simulator?▼
The Federal Reserve Simulator is an interactive educational game where you become the Fed Chair. Control monetary policy, set interest rates, and manage inflation through real economic crises. This Federal Reserve Simulator teaches you how central banking works by letting you experience the challenges of steering the US economy. Navigate scenarios like the 2008 Financial Crisis and COVID-19 pandemic in our Federal Reserve Simulator. Make policy decisions, deploy quantitative easing, and see real-time impacts on GDP, unemployment, and inflation. The Federal Reserve Simulator uses authentic economic models to show how the Fed balances growth and stability.
Is the Federal Reserve Simulator free?▼
Yes! The Federal Reserve Simulator is completely free with no registration or downloads required. Learn monetary policy through hands-on experience with the Federal Reserve Simulator at no cost.
How realistic is it?▼
Based on IS-LM-PC framework with real US economic parameters.
Can I use for classes?▼
Absolutely! Used by economics professors to teach monetary policy.