Central Bank Governor
Central Bank Simulation
๐Ÿ›๏ธ

Central Bank Simulation

Define monetary policy. Adjust interest rates, control inflation, and maintain market confidence. Every decision has cascading effects.

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๐Ÿ“ˆInterest Rate Decisions
๐ŸŽฏInflation Control
๐Ÿ“ฃMarket Communication
๐ŸฆReserve & Currency Management

Monetary Policy Dilemmas

Central banking = managing competing objectives simultaneously.

โš–๏ธ Rate Hike vs Growth

Raise rates and inflation falls โ€” but growth slows and unemployment rises.

โš–๏ธ Inflation vs Unemployment

The Phillips curve: push inflation down and unemployment rises; push unemployment down and inflation rises.

โš–๏ธ Central Bank Independence vs Political Pressure

Government wants low rates. Stay independent for the right call โ€” but political tension increases.

โš–๏ธ Exchange Rate vs Inflation

Raise rates to defend the currency but compress the domestic economy. Let it float and imported inflation follows.

โš–๏ธ Short-term Relief vs Long-term Stability

Print money to ease markets now โ€” but inflation seeds are planted for the future.

Tracked Indicators

InflationUnemploymentGrowthExchange RateMarket ConfidenceInterest RateFX Reserves