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TEACHING TOOLS: SIMULATING MONEY SUPPLY CREATION IN CLASS
Author(s) -
CAMERON NORMAN E.
Publication year - 1997
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1997.tb02043.x
Subject(s) - experiential learning , economics , loan , class (philosophy) , variety (cybernetics) , set (abstract data type) , investment (military) , process (computing) , microeconomics , macroeconomics , computer science , sociology , artificial intelligence , politics , political science , law , programming language , operating system , pedagogy
Students in introductory economics or intermediate macroeconomics can learn and experience the process of creating money through an interactive simulation in which students play the roles of bankers, loan customers, and business firms. The simple version of this simulation is easy to set up, though many instructors will find the more structured version worth the additional setup cost. During the structured simulation, students encounter other macroeconomic concepts such as the marginal efficiency of investment curve, and broad versus narrow money. This simulation offers some experiential learning and adds variety to a macroeconomics course. (JEL A22)