2017-2018 Student Essay Contest
The Federal Reserve Bank of Minneapolis announces the 30th Annual Student Essay Contest open to all high school students in the Ninth Federal Reserve District.
Should the federal government increase the minimum wage to $15 per hour?
Contest Rules and Submission Information
Thirty student finalists will receive $100. In addition, a first-, second- and third-place winner will be selected. The third-place winner will receive an additional $200, and the second-place winner will receive an additional $300. The first-place winner will receive an additional $400 and a paid summer internship at the Minneapolis Fed during the summer of 2019. The winning essays will be published online.
Teachers with one or more students who are selected as finalists will receive a $100 cash prize.
Student essays due
April 20, 2018
May 4, 2018
Awards Program at Federal Reserve Bank of Minneapolis
May 18, 2018
If you have any questions, email EssayContest@mpls.frb.org or call 612-204-5168.
Essay Contest Archive
The Federal Reserve System Essay example
1453 Words6 Pages
The Federal Reserve System In December of 1913, the Federal Reserve System (Fed) was created by the Federal Reserve Act. According to Congress, the role of the Federal Reserve System is to promote maximum employment, stability and growth of the economy, and moderate long-term interest rates. The Fed employs Monetary Policy in an effort to manage both the money supply and interest rates while stimulating the economy to operate close to full employment. One school of thought called Monetarism believes that the Federal Reserve should simply pursue policies to eliminate inflation. Zero inflation may help the market to avoid imbalances, stabilize the business cycle, and promote steady growth in our economy. On the other hand, zero…show more content…
There is always some unemployment resulting from workers failing to hook up with potential employers due to imperfect information. However, neither the demands nor supplies of labor nor the pattern of information among firms and employees is affected by inflation. Hence, inflation cannot affect the level of employment and unemployment and the Phillips curve is as shown. Both inflation and deflation have no affect on unemployment and output. Therefore, from this standpoint, all rates of inflation are optimal. Inflation simply does not matter.
Another version of this theory maintains that the optimal rate of inflation is the actual rate. For example, if an economy currently has a 6-percent inflation rate, 6 percent is the optimal rate. The inflation itself does not matter and in the long run the Phillips curve is vertical but, lowering the equilibrium rate of inflation results in lower output. It is costly to lower inflation because economic agents have inflation expectations, which are difficult to adjust. A period of higher unemployment results from getting agents to lower expectations and this implies lost output. Since there is no benefit to reducing inflation, the implication is evident - the Fed should stick with the actual rate.
There are also many economists who would agree with the claim that zero inflation is the optimal rate of inflation. This claim employs