Students set fiscal and monetary policies and learn how their decisions impact economic variables such as inflation and surplus/deficit
Developed by Wharton Professor Andrew Abel, Macroeconomic Policy Simulation (MacroSim) demonstrates the challenges of making macroeconomic policy in a world where fiscal and monetary policymakers with different objectives have control over various policy tools. For each simulation, students determine fiscal and/or monetary policies for an economy and see the corresponding outcomes over several rounds. MacroSim contains an interactive graphing module that allows participants to perform ad-hoc analysis on one or more of the resulting economic variables.
Instructors using MacroSim have full control over the simulated economy, including the ability to set baseline values (e.g., consumption, investment, inflation); monetary and fiscal policy functions; and domestic, open economy, fiscal, and monetary parameters.