Understanding Monetary Policy: Aperto Develops Simulation Game for the ECB

Economia, a new online game from the European Central Bank, offers young adults from all over Europe a playful explanation of how European monetary policy works.

The monetary policy of the European Central Bank is crucial for price stability in Europe. It counteracts overly high inflation and deflation with various mechanisms, most notably the base rate. But how does monetary policy really work? How is it leveraged by the European Central Bank and what effect does it have on the market? Young adults can now experience this in a realistic online simulation game developed by Aperto, Economia. No sign of dry theory here: although the game is based on complex economic ECB calculation models, its attractive Flash design and numerous interactive options have been perfectly custom-tailored to the target group of young adults aged 18 to 25. Economia offers over 214 different scenarios which, based on a random calculation, vary at the start and throughout the course of the game, so it’s never boring. A glossary provides a descriptive explanation of all special termini. Adolescents without any previous knowledge in the area of economics are therefore able to jump right into the game and quickly learn a lot. Aperto created and supplied the game in 22 different language versions so that young people from all over Europe could use it. The German-language version of Economia is now available at http://www.ecb.europa.eu/ecb/educational/html/index.de.html. In the next stage of development in coming weeks, Aperto will be developing a mobile version of the game for the iPhone.

Economia – Gaming Fun Based on Complex Mathematical Models

Influence the inflation rate by changing the prime rate – Economia makes it possible. The goal is to keep the inflation rate constant at the ideal value as long as possible – below yet close to two percent. Economia allows young people to playfully learn about the correlation between incidents which affect global economics and their impact on the inflation rate in the euro currency area. Just like in real business life, unpredictable events shape the course of the game. Natural catastrophes, fluctuations on the commodities markets and significant technological developments keep players in suspense and require them to continually make new decisions. Economic data, news and a virtual advisory staff help them make the right choices. But be careful: overreactions and overly long hesitations are penalised with inflation. Awards are in store for good players. The success of each step of the game is calculated by an algorithm consisting of a good 200 variables. An optional entry in the list of top players shows how successful a player is compared to others. It’s easy to invite friends by email or through Facebook. However, everyone has to play the game for themselves and make their own decisions just like the head of the ECB does in real life, Jean-Claude Trichet.
“With Economia we offer young adults a way to experience how European monetary policy works. Aperto found the right balance here between gaming fun and economic accuracy, creating a game that’s interesting from start to finish in terms of its visual design and content. Together with Aperto we plan on producing another game to facilitate a better understanding of the ECB’s tasks,” says Heike Nitschner, Communications Specialist at the European Central Bank in Frankfurt.
“The web is very well suited for conveying knowledge in a playful, interactive and inexpensive manner. Having gaming scenarios that are custom-tailored to the target group is an important factor for success. Language, presentation, plot and game design – everything has to fit and produce a perfect picture. The “drier” a subject area is, the more creatively it has to be packaged to appeal to people. In the case of Economia, we also had to find a way to translate complex mathematical models into a context that’s easy to understand for the layperson. The game’s strong correspondence with reality makes it particularly appealing. Players experience reactions to their gaming strategy based on real economic algorithms,” explains Stephan Haagen, member of Aperto AG’s executive board.