Show HN: A central bank simulator game with a realistic economic model

Post by nwah1 » Sat, Jun 18, 2022, 2:38 AM UTC

zeusk wrote: post #68

nwah1 wrote: post #52

Earlier quoted context omitted.

Under certain Keynesian views, Fed policy is mostly irrelevant, and only fiscal policy matters. Or actual printing... which low rates and QE are very different from. Another view from the neoclassical school has a similar conclusion dubbed the Policy Ineffectiveness Proposition. But others say Fed policy does matter because in the real world contracts and prices are sticky. https://en.wikipedia.org/wiki/Policy-ineffe…

How is QE or low rates not money printing? Low rates causes higher private lending, borrowing creates money (fractional reserve banking). QE also creates money by Federal Reserve buying Treasury's bonds with printed dollars. Both of these are temporary, but we have had QE and low rates for over a decade now. QE was supposed to be unwound in 2018, but covid pushed it to new peaks.

Post by gs17 » Sat, Jun 18, 2022, 2:39 AM UTC

Post by criley2 » Sat, Jun 18, 2022, 2:40 AM UTC

user3939382 wrote: post #101

mmastrac wrote: post #11

This game needs a "gold standard" mode to see what happens to the toy economy with no central bank! EDIT: It would also be nice if the game paused around major events to give you more time to think & adjust. I found that the economy went off the rails if you don't react right away.

My limited understanding, is (feel free to correct me): The problem with gold is that it's finite. It might be stable, but it's stable for a very small amount of money. The existing system allows us to create a huge supply of money that is used to drive the creation of these monster companies that end up doing things like inventing new microchip fabrication processes and iPhones. If you suck up all the money supply t…

Post by fartcannon » Sat, Jun 18, 2022, 2:43 AM UTC

xwolfi wrote: post #70

BenoitEssiambre wrote: post #2

I made this game in order to try to wrap my head around central banks, inflation and macroeconomics, in order to get a better understanding of the aftermath of the global financial crisis and the current period of high inflation. Here is a blog post that goes into further details: https://benoitessiambre.com/simcb.html

Can we scam little people with crypto using central bank scapegoating as well ?

Post by pbourke » Sat, Jun 18, 2022, 2:47 AM UTC

anm89 wrote: post #50

pbourke wrote: post #41

Earlier quoted context omitted.

> While there were panics and issues before the era of active central banks, most fo the time, things were calm. Wow - this is insanely inaccurate. Before the active central bank era (call it post-WW2), recessions lasted up to twice as long as they do during the modern era. Unemployment also peaked at much higher numbers: 25% during the Great Depression, for example. The pre-central bank localized agrarian and early…

Yeah, these days we only have existential risk to our system via structural contagion twice per decade. Good thing we moved past that era! Those issues were real and went o longer than they needed to but also weren't as deeply structural as the issues today. Our issues are different but not better.