A while ago, I posted about two online simulation games which brought to life the issues involved in managing an entire economy. Economist Greg Mankiw’s macroeconomics game brings together aspects of both fiscal and monetary policy to deliver a simple yet engaging game. Macro may not be the most loved college course, but today’s headlines are filled with talk of budget deficits, spending freezes and interest rates.

This game puts you in the thick of the action by giving complete control over the both fiscal and monetary aspects of managing an economy. The fiscal side entails managing taxes and government spending, as a % of GDP. You control monetary policy by adjusting money supply growth, which controls the rate at which new money gets printed – high money supply growth lowers interest rates (banks don’t need your money). This high money supply growth encourages borrowing (low interest payments) and promotes consumption but increases prices, and so causes inflation.

Just can't do better than FDR

In this simulation, the focus is to keep the wider economy on track by making sure unemployment and inflation are low while keeping the economy growing. Your approval ratings let you see how well you’re doing but if they fall too low, it’s game over. External events can also influence the economy.

And that’s jus’ the tip.