COLLEGE
STUDENTS GET THEIR CHANCE TO RECOMMEND TO THE
NEW YORK FEDERAL RESERVE BANK WHAT SHOULD BE
DONE WITH INTEREST RATES
The
first College Fed Challenge in New York,
March 4
Parastu
Malik '04, Photo by Ruth Thomas |
New
York, N.Y., February 28, 2002 – A group
of budding economists from area colleges, including
a team of Barnard and Columbia students, will
have the opportunity to offer the Federal Reserve
Bank of New York (FRBNY) advice on how to deal
with the slumping economy, on Monday, March
4., at 9:30 a.m.
The economics competition, titled the College
Fed Challenge, initiated by Parastu Malik,
a sophomore at Barnard College, will take place
for the first time at the FRBNY, which also
has sponsored the event.
"Parastu was definitely the catalyst behind
this pilot program in New York for college students.
Our mission at FRB is to promote greater understanding
of the Fed’s role as economic policy makers,
and we found that the best way to teach kids
about what we do and how our decisions affect
economy, is to allow them to act as policy makers,"
said Lloyd Bromberg, director of the program
at FRB of New York.
Teams of students, representing Barnard College/Columbia
University, Stern Undergraduate College, Pace,
and SUNY Buffalo, will each give 15-minute presentations
to two senior FRBNY officials analyzing current
economic conditions and recommending how the
Fed should respond. Judges will then question
the students about their presentation and their
understanding of monetary policy for ten minutes.
"In the competition student teams simulate
the discussion among members of the Fed’s
Open Market Committee in determining monetary
policy, and thereby demonstrate their knowledge
of macroeconomics and the state of the U.S.
and global macro economy. We are so proud that
a team of Barnard and Columbia students will
present at this very first competition in New
York," said David Weiman, Professor of
Economics at Barnard College.
The Barnard/CU team, which has intensely prepared
for the past couple of weeks under the guidance
of Weiman, has spent hours researching various
economic indicators, financial markets, and
the prospects for an economic recovery. The
student team includes: Nina Diaz BC ’04;
Chanelle Keane BC ’04; Jonas Mendoza CC
’03; Navnoor Kang CC ’03; Diane Vanderhoef
BC ’02; and Malik BC ’04.
The Barnard/CU team and fifteen other student
researchers have gathered information from many
sources, including FRB’s research and data
from the Bureau of Labor Statistics. "We
actually took a lot of their (FRB) numbers,
analyzed them, redid the graphs, and kept abreast
of the current research," explained Malik,
the group’s president.
"We’ve been working until 10 p.m.
every night on this," added Vanderhoef,
one of the Barnard students on the team. "We’ve
had a great time, and it’s been great to
apply my economics major to a real-life situation."
The program was first started at the high school
level with 14 schools participating and has
since grown to a nationwide competition involving
260 high schools annually. Across the country,
teams of high school students analyze current
market data, and present their findings for
the appropriate course for monetary policy to
the Federal Reserve economists. Each presentation
is followed up with questions from economists
at participating Federal Reserve Banks.
Malik, who participated in the high school version
of the competition while attending Montclair
High School, found the experience so positive
that when she started her studies at Barnard
she wanted to create a similar competition for
college students.
"It showed me how fundamental economics
is to everyday life. It made me realize how
economic indicators such as GDP or unemployment
are relevant and crucial to the understanding
of society. Furthermore, I had the opportunity
to work with top economists at the New York
Branch in preparation for the national competition
held in Washington, D.C.," she said.
Malik contacted Lloyd Bromberg, the program’s
director at FRBNY, and persuaded the bank to
sponsor the idea.
After Monday, Malik hopes that the College
Fed Challenge will become an annual competition
for the New York area. The Richmond, Virginia,
FRB already has a college version, which Georgetown
University won last year.
After graduation, Malik hopes to go into investment
banking, and work for an organization such as
the Federal Reserve Bank. "Hopefully the
markets will be better by then," Malik
quipped.
What:
The first College Fed Challenge
When: Monday, March 4, 2002, at 9:30 a.m.
Where: The Federal Reserve Bank of New York,
33 Liberty Street, New York, NY
###
Contact:
Petra Tuomi, Public Affairs, 212-854-7907
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