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07 August 2009

classroom economics experiments

i've been thinking lately about inflation and the meaning of money lately. i think a classroom experiment with monopoply money and a real lemonade stand would be great. folks draw some sort of income (perhaps making the lemonade and selling it to the vendor), vendors get paid a fixed turn-based wage. if the resale price of lemonade rises 10% every turn, the "real value" of money immediately becomes apparent.

as an added capitalist spin, savings might be used to buy a stand or "manufacturing plant", and employees are hired from the participants. finally, adding or removing money from the system, a bank with a savings rate...

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