06 money creation

Lesson 22 - Money Creation

Specification

Architecture

• Networked: No
• Reporting: No

Panel Breakdown

• Title Panel
  • Elements
    • Text description of activity
    • Slider for setting the reserve ratio (defaulting to 20%)
    • Button to begin the activity
• Slides
  • Players step through a series of slides. Each slide's content is generated according to the follow steps:
    • A percentage of the dollar bill's remaining area is removed (equal to the reserve ratio)
    • The corresponding amount is added to the list of reserved sums
    • The running total (representing money created) is increased by the corresponding amount
  • Slides progress until 1% or less of the bill remains
  • Elements
    • The reserve ratio
    • A graphic of a $100,000 bill
    • A running total of money created (empty for the first slide)
    • A list of sums that have been previously reserved

Wireframe

Needs

• Content
  • Short activity description
  • Extended activity description
  • Activity instructions
• Design assets
  • Graphic of a $100,000 bill
• Open questions

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Original Description

This is another lesson where we believe that adding a technology compnent can make the lesson a lot easier to execute.

The lesson involves a giant $100,000 bill that you eventually cut apart as the lesson goes on. Now, if you teach five sections over the course of a day, that involves making 5 of these giant bills. There is also a lot of manual banking transactions that happen in the lesson. It's a lot easier to create a visualization of the large bill.

The original version of this lesson includes a Money Creation Worksheet where students keep track of the transactions by hand. As the lesson goes on, this bill gets cut up and transactions are recorded and calculated by hand. We would like to create a digital version of this worksheet that assists with the calculations and also allows students to adjust some of the variables in the lesson. (For example, in the activity, students assume a 20% required reserve ratio—but later on, they are also to consider how the simulation would play out of the required reserve ratio was different. It would be awesome, if they could just adjust the reserve ratio in on the web page and see how it would play out.)

There are multiple bankers and borrowers in this activity, but for the sake of simplicity, there doesn't need to be any multiple user, real-time compontent. The entire activity could take place in one browser hooked up to a projector. Ideally, the students would be able to use the Money Creation Worksheet—or calculator, in this case—on their own to test out different hypotheses.

Possible Design Needs

• A large $100,000 bill that can be cut up (so, various stages of disrepair). Here is an example.

Notes from Mike & Z

• What do the bankers and borrowers do?
• Is there an interaction between the two? Is this a visualization of a simulated system with controls for variables?