Economics and Business Students Learn Firsthand about the Nation’s Economy

Lafayette students recently got the chance to tell the government what to do about the nation’s economy in a mock-meeting for the Federal Reserve Bank of Richmond.

Lafayette’s Fed Challenge team joined 11 other college teams from around the region at the College Fed Challenge competition in Baltimore. Lafayette took second place as a finalist, along with Salisbury University, finishing behind Mount Saint Mary’s University.

The team is comprised of Marquis Scholar Chris Benonis ’08 (Doylestown, Pa.), a double major in economics & business and geology; Tomas Bielskis ’07(Siauliai, Lithuania), a mathematics-economics major; Mevan Jaysinghe ’08(Colombo, Sri Lanka), who is pursuing a B.S. biology and A.B. with a major in economics and business; Vijay Krishnan ’07 (Bangalore, India), a double major in economics & business and international affairs; Sukritin Mehta ’08 (New Delhi, India), a double major in economics & business and mathematics; Thuy Lan Nguyen ’07(Hanoi, Vietnam), a double major in economics & business and mathematics; Chris Rosa ’07 (West Islip, N.Y.), a double major in government & law and economics & business; and Marquis Scholar Matthew Weiss ’07 (Manalapan, N.J.), a double major in economics & business and government & law.

“Fed Challenge was one of the most useful classes I took in Lafayette,” says Beilskis. “We learned to apply the macroeconomic theory to the current state of affairs and to really understand the interrelationships between different trends. The material was incredibly helpful for me in job interviews and I am sure it will be even more useful when I start working next year.”

The College Fed Challenge is intended to help students become more knowledgeable about the Fed and the decision-making process of the Federal Open Market Committee, the Federal Reserve’s monetary policy-setting group. The goal is to promote a greater understanding of the Federal Reserve’s role in developing and implementing monetary policy, increase interest in economics and finance for academic study and a career, improve research, presentation, critical thinking and cooperation skills, and allow for a closer relationship between colleges and the Federal Reserve Bank.

According to adviser James DeVault, associate professor of economics and business, the students were required to make a 20 minute presentationthat demonstrates their knowledge of monetary policy and macroeconomics to a panel of judges. They also had to field questions from these judges for an addition 15 minutes.

Presentations included a discussion of current economic and financial conditions, near-term forecast of economic and financial conditions that affect monetary policy, identification of risks that threaten the U.S. economy, and short-term interest rates recommendations.

“Preparation for the Fed Challenge requires an extra effort to understand the concepts of macroeconomics and U.S. monetary policy beyond the classroom,” explains Jaysinghe. “It creates the opportunity for a group of individuals to immerse themselves in the background and future trends of the U.S. economy and put themselves in the place of members of the actual Federal Open Market Committee in making important policy decisions.”

He credits his extensive knowledge of the subjects on courses he has taken at Lafayette and adds that being a part of the Fed Challenge team has enabled him to apply that knowledge and fully understand how aspects of the economy affect each other.

Nguyen agrees and emphasizes these new skills.

“I was able to use different techniques like forecasting, and analyzing data, that I learned in the Forecasting class,” she says. “I could use PowerPoint and Excel easily and found needed data series. What was the most beneficial was that we kept up with the news in the Wall Street Journal, Business Week, and Economists. We also learned how different macro factors work and interact with each other. I can read the Wall Street Journal and understand what they say about the economy.”

Students are not the only ones who benefit from the rewarding experience of the Fed Challenge.

“I enjoy working with the Fed Challenge students because they are very bright and hard working,” says DeVault. “I also enjoy working with students out of the classroom as I get to know them on a more personal level. Finally, seeing the student presentation during the competition is very fulfilling because I can see the results of my efforts more directly than in the classroom.”

The team attributes their success to their mentors DeVault, Ed Gamber, associate professor of economics and business, and Julie Smith, assistant professor of economics and business, citing the faculty’s enthusiasm, dedication, expertise, and superb guidance.

Two years ago Lafayette’s College Fed team took third place at the national championship in Washington, D.C. winning $2,500 for the economics and business department.