• Corpus ID: 29987056

A Classroom Experiment in Monetary Policy Title for running header : A Classroom Experiment in Monetary Policy

  title={A Classroom Experiment in Monetary Policy Title for running header : A Classroom Experiment in Monetary Policy},
  author={John Duffy and Brian C. Jenkins},
We propose a classroom experiment implementing a simple version of a New Keynesian model suitable for courses in intermediate macroeconomics and money and banking. Students play as either the central bank or members of the private sector. The central banker sets interest rates to meet either twin objectives for inflation and the output gap or to meet only an inflation target. In both settings, private sector agents are concerned with correctly forecasting the inflation rate. We show that an… 


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