A Goldsmith Exercise for Learning Money Creation Activity

[#1]

A Goldsmith Exercise for Learning Money Creation

Journal of Economic Education 44(4) 2013

(experiment)

In the exercise, students pretend they are in the eighteenth century and simulate interactions among a goldsmith, a gold depositor, a merchant, and a borrower, in order to better understand how banks create money.

[chiang]

This is a fun way to teach money creation and the money multiplier.