Abstract
This paper presents a classroom exercise that helps students understand the quantity theory of money and the implied relationship between money supply growth and inflation. In addition, the role and meaning of velocity is highlighted. The activity is easily implemented and only requires paper, pencil, and a spreadsheet to record data generated by the students. One major advantage of this game is that the outcome will almost always support the theoretical implications of the quantity equation. This is opposed to other simulations, which can sometimes differ dramatically from the model's prediction.
Recommended Citation
(2026)
"Teaching the Quantity Theory of Money: A Simple Classroom Game,"
Journal of Economics and Finance Education: Vol. 19:
Iss.
1, Article 2.
Available at:
https://scholarship.rollins.edu/jefe/vol19/iss1/2
