Usachev
V.A., Voitenko
K. R.
Donetsk Natioinal University of Economiks and Trade
named after Tugan-Baranovsky
Economics is the social science that analyzes the
production, distribution, and consumption of goods and services. The term
economics comes from the Ancient Greek οἰκονομία hence "rules of the house(hold)". Political economy was the
earlier name for the subject, but economists in the late 19th century suggested
"economics" as a shorter term for "economic science" that
also avoided a narrow political-interest connotation and as similar in form to
"mathematics", "ethics", and so forth.
A focus of the subject is how economic agents
behave or interact and how economies work. Consistent with this, a primary
textbook distinction is between microeconomics and macroeconomics.
Microeconomics examines the behavior of basic elements in the economy,
including individual agents (such as households and firms or as buyers and
sellers) and markets, and their interactions. Macroeconomics analyzes the
entire economy and issues affecting it, including unemployment, inflation,
economic growth, and monetary and fiscal policy.
The Global Economics Game is an educational software game that simulates
macroeconomic activity in a global context. Players are in charge
of their nation's economic policies. They are the chief economic advisers
to the president, the legislature, and the central bank of their
countries. The object of the game is to promote balanced economic growth
without excessive pollution, while maintaining full employment without too much
inflation. Fiscal, trade, and monetary policies are used to avoid undesirable
situations such as a depression or stagflation.
The
game is fun to play. It puts you in charge of a nation's economy.
One person can play the game against 1 to 6 other persons and/or computer
managed countries. Because it is educational and based upon the
fundamental principles of macroeconomics, it is a useful and practical product
for the following:
Ø
Students, faculty and economics departments at high schools, colleges,
and universities.
Ø
International business programs at academic institutions.
Ø
Training programs at international companies and organizations.
Ø
Parents who want to give their sons and daughters an educational gift.
Ø
Persons who like to play strategy games.
Ø Anyone interested in
the myriad of forces that shape the global economy.
"The Global Economics Game represents an excellent vehicle
for providing impetus and stimulation for students to learn more about
macroeconomics. Students learn about the difficulties and tradeoffs
associated with stabilizing and balancing a nation's economy through the use of
discretionary economic policies, all within the framework of a challenging and
fun game. The game realistically simulates the interactive economic
performance of nations based on (1) fiscal, international, and monetary
policies supplied by the student 'policy makers' and (2) a set of predetermined
socioeconomic competitive conditions and shocks that are changing throughout
the game."
- C. T. de Arrigunaga, Ph.D., President of
Financial Consulting
-
Adjunct Senior Professor in MBA Program at Golden Gate University
-
Adjunct Professor in International Graduate Finance Program at University of
California, Berkeley
As of today there are many such games on the web. Here
are nine to consider (all are listed on the far right under Top Economics
Games):
1. Fix the Budget (NYT 11-13-2010)
This game lets you pick from the menu of choices to
see how you would fix the budget. If only all government leaders played this
game and posted their results.
2. Fed
Chairman Game
This game from the Federal Reserve Bank of San
Francisco lets you try your hand as Chairman of the Fed. My first round, I was not reappointed as
Chair.
3. Game for Macroeconomists
This game is posted on Gregory Mankiw's site. Here you
get to control both fiscal and monetary policy. It is also called the
President's game - except in reality the President does not get to control
monetary policy directly. To the chagrin of most Presidents, they don't even
get to control fiscal policy directly, but must work with Congress.
One of the biggest knowledge gaps in freshman macro is
that fiscal policy refers to taxation and spending and is conducted by Congress
and the President (at the national
level). Whereas monetary policy typically refers to targets for money
supply, interest rate, and/or credit and is conducted by the Fed.
4. The Economy Stupid (The Prime Minister's Game)
This game lets you choose fiscal policy for Great
Britain. The game includes the VAT (value added tax - essentially a national
sales tax that is designed to ensure collection).
5. Virtonomics Virtual Business
This game offers cash awards. It takes a substantial
time investment to learn to play the game, but all aspects of running an
international business are included. Players compete with other players around
the globe.
6. Wall Street Survivor Stock Market Game
This is a top simulated stock market game. Cash Awards
are given to the most successful players. Clubs or classes now can also win
awards.
7. Investopedia Stock Simulator
Another top simulated stock market game. Cash awards
are not given, but the game is integrated with Investopedia's vast pool of
information for investors.
8. How to Trade Foreign Exchange
How the Market Works is yet another simulated stock
market game. It also offers this game to practice trading in the foreign
exchange markets.
9. Mock Futures Trading
This game offers practice trading in the
futures/commodities markets.
Game theory's popularity is relatively recent. Its
mathematical techniques were pioneered in the 1940s and 1950s by John Nash,
John von Neumann and Oskar Morgenstern, although one of the earliest
game-theoretic analyses of oligopoly was by Antoine Augustine Cournot in 1838.