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ERIC Number: EJ703044
Record Type: Journal
Publication Date: 2004-Mar-22
Pages: 9
Abstractor: Author
ISBN: N/A
ISSN: ISSN-0022-0485
EISSN: N/A
Available Date: N/A
A Monetary Policy Simulation Game
Lengwiler, Yvan
Journal of Economic Education, v35 n2 p175 Spr 2004
The author presents a computer game that puts the player in the role of a central bank governor. The game is a stochastic simulation of a standard reduced form macro model, and the user interacts with this simulation by manipulating the interest rate. The problem the player faces is in many ways quite realistic--just as a real monetary authority, the player is confronted with a constant stream of shocks he cannot unambiguously identify, and his decisions affect the economy only with a considerable lag. These are two ingredients that make monetary policy decisions so challenging in reality and that also make playing this game successfully rather difficult. The game can be used for undergraduate or continuing education classes. An "advanced mode" allows the teacher (or student) to customize many aspects of the simulation and to experiment with different calibrations or different monetary feedback rules. (Contains 10 endnotes.)
Heldref Publications, Helen Dwight Reid Educational Foundation, 1319 Eighteenth Street, NW, Washington, DC 20036-1802. Web site: http://www.heldref.org.
Publication Type: Journal Articles; Reports - Descriptive
Education Level: Adult Education; Higher Education
Audience: Teachers
Language: English
Sponsor: N/A
Authoring Institution: N/A
Grant or Contract Numbers: N/A
Author Affiliations: N/A