From what I have understood so far, an NFC phone will act as an NFC reader which will read data from an NFC tag. Now my question is, can we switch this around? Can we make a
Yes you can which is Peer-To-Peer Mode
Peer-To-Peer Mode
Bidirectional P2P connection to exchange data between devices
–Proximity triggered interactions
–Nexus S: Devices have to be placed back-to-back
Example of Applications
–Exchange of vCards
–Hand-over of Tickets & P2P Payment
–Web-page sharing, Youtube-video-sharing
–Application sharing
No, not at the moment. Google pointed out at the Google IO 2011, that card emulation is not supported and won't be supported for a while. Main (and easy to understand) problem: Which App should get the right on the phone to emulate a smartcard?
Yes, take a look at NDEF Push in NFCManager - with Android 4 you can now even create the NDEFMessage to push to the active device at the time the interaction takes place.
Its possible to make Android device behave as an NFC Tag. Such a behaviour is called Card Emulation.
If you mean getting a powered NFC device to pretend to be a passive one (eg a tag).. not sure how well it works but the android app NFCClassic purports to record tag contents and then allow the tag to be activated and appear to be the copied tag to NFC readers. Creates a library of recorded tags.
For NFC tech, it is easy. For Google, it will not support it as Google wallet.