Economics · Macroeconomics

The IS-LM Flight Simulator

Build the IS and LM curves from first principles, run the four canonical fiscal-monetary policy experiments on the calibrated economy of Costaria across nine quarters spanning mild slack, deep recession and the zero lower bound, and discover why the model that taught generations of policymakers is both indispensable

9 rounds Executive English, Español

Preview

About this simulation

Build the IS and LM curves from first principles, run the four canonical fiscal-monetary policy experiments on the calibrated economy of Costaria across nine quarters spanning mild slack, deep recession and the zero lower bound, and discover why the model that taught generations of policymakers is both indispensable and dangerously incomplete.

Who it is for

An advanced simulation for participants used to working with the main frameworks and trade-offs of the subject, designed for executive education and experienced professionals.

How a session runs

  1. The instructor creates a session from the Eureka dashboard and invites the participants.
  2. Participants play 9 rounds. In each one they submit their decisions and the simulation calculates the results.
  3. The simulation can be run in English, Español.
  4. The instructor follows each participant's progress and results from the dashboard, and uses the class results for the debrief.

Decisions participants make

The decisions participants make during the simulation:

  • Government Spending (G)
  • Net Taxes (T)
  • Real Money Supply (M/P)

What participants track

What participants follow on screen as the rounds go by:

  • Policy Levers
  • Quarter Log

Subjects covered

Designed for courses in Macroeconomics.

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