A Goldsmith Exercise for Learning Money Creation

Autor/inn/en	Pearlman, Sarah; Rebelein, Robert P.
Titel	A Goldsmith Exercise for Learning Money Creation
Quelle	In: Journal of Economic Education, 44 (2013) 4, S.372-388 (17 Seiten)Infoseite zur Zeitschrift PDF als Volltext Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Zeitschriftenaufsatz
ISSN	0022-0485
DOI	10.1080/00220485.2013.825117
Schlagwörter	Economics Education; Macroeconomics; Class Activities; Banking; College Instruction; Group Activities; Role Playing; Discussion (Teaching Technique); Undergraduate Students + Suchen Sie Ihr Suchwort? Wirtschaftskunde; Makroökonomie; Bankgeschäft; Hochschullehre; Gruppenaktivität; Rollenspiel
Abstract	In this article, the authors outline a classroom exercise involving goldsmiths designed to improve undergraduate students' understanding of how banks create money. This concept is important to macroeconomics and money and banking courses, yet students frequently struggle with it, largely due to the nonphysical nature of deposits and reserves. In contrast, gold-based banking systems tend to be more intuitive because of the physical nature of gold. By simulating interactions among a goldsmith, a depositor, a merchant, and a borrower in a gold-based system, students gain a deeper understanding of reserves and money creation. In particular, the exercise illuminates the intricate link between lending and the creation of new money, and highlights the importance of fractional reserve banking and reserve deposits. (As Provided).
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Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2017/4/10