THE MONEY GAME; A DYNAMIC SIMULATION INCLUDING RANDOM SHOCKS FOR MONEY AND BANKING COURSES Developments In Business Simulation & Experiential Exercises, Volume 17, 1990 176 THE MONEY GAME; A DYNAMIC SIMULATION INCLUDING RANDOM SHOCKS FOR MONEY AND BANKING COURSES Richard M. Alston, Weber State College Wan Fu Chi, Weber State College ABSTRACT The Money Game is a set of interactive graphics tutorials and simulation software for individual student use in money and banking courses. Its unique approach to dynamic market simulation, including random shocks, is based on a step-by-step learning process. INTRODUCTION Most money and banking courses use money market and macroeconomic models to place monetary policy in its real world context. Pedagogically sound computer aided instruction can make these model come alive. THE MONEY GAME The Money Game is an extensive set of interactive software tutorials and simulation games designed for individualized student use. It consists of three jam-packed 360K disks for use on IBM (or compatible PCs. The programs are distributed free by Scott, Pores man and Co. to adopters of Frederic Mishkin’s Economics of Money, Banking. and Financial Markets, Using The Money Game, a student works through five pre- simulation modules applied to the bond market, the money market, the foreign funds market, the federal reserve system, and macroeconomic equilibrium. Disk One consists of descriptive tutorials, interactive questions and explanations, and problem solving exercises on the following topics: discounting and present value calculations, mathematics of simple and fixed payment loans, coupon and discount bonds, rate of return, and capital gains. The student is provided a tool kit for financial calculations (similar to an HP12C). Disk Two introduces the student to the dynamic gaming elements of The Money Game, but does it sequentially so that every element of the model that the students will ultimately work with becomes totally familiar to them. Disk Two contains interactive tutorial and gaming modules on bond markets, money markets, and foreign exchange markets and four pre-simulation games for individual student use. Each of the modules leading up to, for example, the money supply game, is designed to Leach the student the nature of the model, its structure, the nature of its coefficients and parameters, and what happens when, ceteris paribus, one of them changes. (Other pre-simulation games include the bond market game, the liquidity preference game, the money supply game, and the foreign exchange game.) Thus, the student is introduced to the static analysis necessary to understand the sectorial model(s) prior to using the final simulation model in The Money Game. Disk Three takes everything in the previous models and puts it together in a dynamic simulation of the macro-economy. The Money Game interactive simulation integrates the course objectives in a real world setting with unforeseen random shocks to the system. STRUCTURE OF THE MONEY GAME SIMULATION The logical structure of the final complete simulation in The Money Game is shown below. CONCLUSION In The Money Game students are first given the opportunity to learn the principles required to effectively use the computer simulation. By using a step-by-step building block approach through the early interactive gaming models, the student using The Money Game is well prepared for putting that knowledge to work in formulating appropriate monetary and fiscal policy to correct short-run inflationary and deflationary gaps in the simulated economy. Only after mastering the basic principles of the course are they faced with non-stochastic, random shocks to the system that require quick assessment and adjustment to new information. The instant feedback and ability to try again until they get it right makes the pedagogical approach one that students voluntarily choose to use over and over again. Table of Contents Volume 17, 1990 The Impact of Decision Support Systems on the Effectiveness of Small Group Decisions - Revisited The Relationship Between Financial Performance and Other Measures of Learning on a Simulation Exercise Use and Effectiveness of an Analogy-Based Expert System Suggestions for Computerized Business Authors Dealing with Power: An Experiential Exercise Using Movie and Personal Diary Analysis Techniques A Model for Developing Student Skills and Assessing Outcomes Through Outdoor Training Computer-Aided Exercises Versus Workbook Exercises as Learning Facilitator in the Principles of Marketing Course An Exposition of Guilford's Si Model as a Means of Diagnosing and Generating Pedagogical Strategies in Collegiate Business Education Formal Planning and Simulation Team Performance: A Cross Sectional Approach Cases: Real Organizations in Real Time in the Classroom An Empirical Investigation of the Internal Validity of Marketing Simulation Game An Empirical Evaluation of the Pedagogical Value of Playing a Simulation Game in a Principles of Marketing Course Factors Affecting Effective Teaching of Strategic Planning: Some Preliminary Evidence An Experiential Exercise for Learning About the Relationship Between Organizational Form & the Project Management Process Accounting Communication Skills can be Taught in the Auditing Course Modeling Cost Functions in Computerized Business Simulation: An Application of Duality Theory and Sheppard's Lemma A Life Cycle Analysis of Decision Making for a Strategic Management Team What's the Problem? A Dynamic Model for Teaching Problem Solving Skills Experientially International Currency Fluctuations: Money$im, A Simulation Superstores: A Specialized Retailing Simulation Within a Specialized Marketing Curriculum Factors Affecting Student Perceptions of Learning in a Business Policy Game VC + EL = VL The Name Game: An Experiential Exercise in Intergroup Relations The Effects of Experiential Accounting Work Experience on Student Performance in Intermediate Accounting Courses The Results of Using the Experiential Activity Group Performance Evaluation in a Business Policy Setting Using a Legal Database to Describe the Legal Environment of Marketing (and Business) Matching Environmental Uncertainty and Organizational Configuration An Instructional Computer Simulation of Tampering in QC Executive Evaluation of Student Learning in the Looking Glass Simulation Group Personality Composition and Total Enterprise Simulation Performance An Expert System for Selecting Analytical Techniques for Analyzing Marketing Research Data Effects of Cognitive Styles on Responses in an In-Basket Simulation A Psychometric Analysis of Kolb's Revised Learning Style-Inventory Selecting and Developing Experiential Exercises Using Movies Application of a Real-World Strategic Management Model in the Classroom Demand Equations which Include Product Attributes Consumption as the Objective in Computer-Scored Total Enterprise Simulations The Effects of Decision Format and Evaluation on Simulation Performance, Decision Time, and Team Cohesion The Effects of Computer Related Assignments on Student Performance in Business Administration The Money Game: A Dynamic Simulation Including Random Shocks for Money and Banking Courses Methods for Evaluating Performance on Business Simulations: A Survey The Effects of Synergogy on the Policy Course: Significant Improvements in Student Learning and Teacher Evaluation Conditions and Outcomes of Trust in a Two-Person Bargaining Exercise Bankgame Enhancing Computer Business Simulation with the Use of VGA Graphics An Experiential Approach to Entrepreneurship An Advanced Simulation Method (ASM) for Multiple Objective Problems The Influence of Experiential learning Techniques on Student Recognition of Non-Primary Learning Styles Negotiating Mergers and Acquisitions: A Cocktail Napkin Approach Identification of Unintended Effects in Experiential Laboratory Exercises An Experimental Comparison of Paper and Pencil and Computer Aided Decision Support Tools Porting a Simulation from the IBM World to the Macintosh World A Transaction Cost Analysis of Experiential Learning The Development of Experiential Exercises for Courses in Entrepreneurship and Small Business Management The Assessment Center as and Experiential Classroom Exercise Pricing Strategy Algorithms for Playing Business Simulations Organizational Structures for International Operations: An Experiential Activity Simulation Emphasis in the Business School Capstone Course An Integrated Approach to Computerizing the Business Curriculum Cross-Cultural Business Negotiations Exercise Organizational Socialization and Gender Differences in Students at Work Understanding Student Work Experience: A Content-Analytic Approach Introducing Executive MBA Programs with Management Games An Analysis of Improvement in Business Decision Outcome with Sequential Use of Two Simulation Games Teaching Business Policy Utilizing Mass Lecture and Individual Case Labs Potholes Along the Road to Evaluating Learning Outcomes: The Case of Outdoor Management Training Experiential Learning for Interior Design Students: Using CADD, Lotus 1-2-3, and Wordperfect Cognitive Learning Using a Computer-Based, Qualitative Interactive Business Simulation Sex Discrimination: Does the Woman get the Job or Does the Best Man Win? A Search for Visual Aids to Support Experiential Learning Through the 1990's An Experimental Analysis fo the Effectiveness of Student Role-Playing in Sales Training How to Have Students Learn from their Term Projects Self-Evaluation Exercise (SEE): An Assessment of Class Contribution A Study of the Influence of Team Formation on Attitudes and Performance in Management Games A Hardware Based CIM Simulation Laboratory Model Test Substance Abuse in Organizations Micro Computer Training Models Teaching Forecasting, Cash Budgeting and Inventory Model Building Using SBTools A Comparison of the Effects of Experiential Learning Activities and Traditional Lecture Classes An Adjunct Writing Instruction Assistant, The Computer; With an Illustration Classroom Software for ABC Analysis Utilizing Information Processing Technology to Enhance the Business Policy Simulation Experience Progressive Cases Realistic Job Previews Vs. Traditional Job Previews: Experiencing the Differences and Understanding the Consequences Investment Analysis Using the Pragmatic Multiplier Approach A Computer Simulation Interface for Competitive and Firm Analysis Self-Assessment of Ethical Decision Making Predispositions Preparing Managers for Overseas Assignments An Inquiry into Japanese Marketing: Workshop on Teaching Japanese Marketing The Performance Appraisal Feedback Interview: A Role Play for Human Resources Management Teaching Counselor Selling techniques Using Experiential Techniques to Teach International Topics International Management Simulation Gaming: Current Status and Future Developments A Realism Comparison of Simulation Technologies/Methodologies A Time-Efficient Game to Illustrate Concepts Taught in Management Courses and Management Development Programs Teaching the Management of Technology The Concept of Face and the Applicability of Experiential Exercises in an Oriental Culture's