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A classroom game to teach the principles of money and banking

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  • Adam Hoffer

Abstract

This paper describes how to implement and run a game for teaching the principles of money and banking to an undergraduate economics class. The game primarily deals with the market for loanable funds, but numerous extensions are provided to cover topics such as monetary policy, the tools of the Federal Reserve, shifts in the equilibrium of the market for loanable funds, and the quantity theory of money. The experiment can be used in principles, intermediate macroeconomics, or money and banking courses. The experiment takes approximately 45 minutes to run, depending on class size, and requires no computers.

Suggested Citation

  • Adam Hoffer, 2015. "A classroom game to teach the principles of money and banking," Cogent Economics & Finance, Taylor & Francis Journals, vol. 3(1), pages 1095448-109, December.
    • Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1095448
    DOI: 10.1080/23322039.2015.1095448
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    References listed on IDEAS

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    1. Cameron, Norman E, 1997. "Teaching Tools: Simulating Money Supply Creation in Class," Economic Inquiry, Western Economic Association International, vol. 35(3), pages 686-693, July.
    2. Dieter Balkenborg & Todd Kaplan & Timothy Miller, 2011. "Teaching Bank Runs with Classroom Experiments," The Journal of Economic Education, Taylor & Francis Journals, vol. 42(3), pages 224-242, July.
    3. Adam Hoffer, 2014. "Fixing Fallacies," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 29(Spring 20), pages 141-147.
    4. Susan K. Laury & Charles A. Holt, 2000. "Classroom Games: Making Money," Journal of Economic Perspectives, American Economic Association, vol. 14(2), pages 205-213, Spring.
    5. Matthew C. Rousu & Jay R. Corrigan & David Harris & Jill K. Hayter & Scott Houser & Becky A. Lafrancois & Olugbenga Onafowora & Gregory Colson & Adam Hoffer, 2015. "Do Monetary Incentives Matter in Classroom Experiments? Effects on Course Performance," The Journal of Economic Education, Taylor & Francis Journals, vol. 46(4), pages 341-349, October.
    6. Mary Mathewes Kassis & Denise Hazlett & Jolanda E. Ygosse Battisti, 2012. "A Classroom Experiment on Banking," The Journal of Economic Education, Taylor & Francis Journals, vol. 43(2), pages 200-214, April.
    7. Smith, Vernon L, et al, 1982. "Competitive Market Institutions: Double Auctions vs. Sealed Bid-Offer Auctions," American Economic Review, American Economic Association, vol. 72(1), pages 58-77, March.
    8. Adam J. Hoffer & George R. Crowley, 2015. "Did You Say That Voting Is Ridiculous? Using South Park to Teach Public Choice," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 30(Fall 2015), pages 103-109.
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