Federal Reserve

I Trashed the Economy When I Was Head of the Fed

Running a central bank is even harder than you think.

That shadowy figure might be me, doing a terrible job.

Photographer: SAUL LOEB/AFP/Getty Images

The San Francisco branch of the Federal Reserve has a game on its website that lets you play at being Chair of the Federal Reserve. After tinkering with it, I've come to some conclusions: Modeling the economy is a mug's game, short-term interest rates are a poor tool for steering the economy, and I should never be given the job of running a central bank.

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