By simulating trading in an actual marketplace, the traders feel the difference, which reinforces the learning objectives. The game is designed to need minimum of materials, but it is useful to have a helper to the faciliator and to plan ahead which rounds to play to make your point.
Time: 4 or 5 quick rounds with reflection easily takes 90 minutes. Much more is possible.
Player objective: to assemble the most sets of cards of the same value by exchanging cards (one for one).
Materials:
Number of playing cards
To get the game working well requires that attention be given to the number of cards in circulation. Each player holds 4 cards and enough extra cards are needed to ensure there is a good mixture on the table. It is never possible to buy playing cards or green cards from the source.
Format
Players exchange cards to make a set of 4 the same number. IMPORTANT direct exchanges must be beneficial to BOTH parties They bring the sets back to the table, mix them up and get 4 new DIFFERENT cards and one sweet. There may be an attendant at the table helping to shuffle and redistribute the cards and reminding people to take sweets. Needed cards may be exchanged directly only for needed cards (see barter rules). Green cards can be traded in place of a needed cards, allowing players to split the barter. Green cards cannot be submitted like a wildcard in a set of four but only used in exchange. Players keep their materials between rounds though some rounds may require redistributing green cards. Each round consists of the following stages:
Direct Barter
Players swop cards they don't need for cards they do need. Because there is an implied transaction cost it is not allowed to swop a card someone wants for a card you don't want.
No paper is issued to start.
N.B. This should be a short round because it is very frustrating and is just to make a point about double coincidence of needs.
Chartalist
Approx 1 player in 12 starts the round with additional 4 greens
N.B. This is better than barter, but unfair and more greens needed. Explain that the greens are to lubricate the economy and in principle could be withdrawn. Don't mention interest.
Credit money
Anyone take as many greens as they like, and receive a (red) mark on their skin.
Perhaps play for longer to see the effects. Inflation?
N.B. Sufficient quantity of greens makes exchange work well
Debt money
Players are told that at the end of the round they must repay double what they borrowed.
Perhaps play for longer to see the effects. Inflation?
N.B. many players unable to pay back. The bank ends up with the most tokens. Reluctance to exchange?
Commodity money
Trade with sweets instead of greens
N.B. Sweets aren't optimised for storage or exchange and get sticky. Must be earned before can be used as money. May be a reluctance to exchange.
Mutual Credit
Each player given 3 greens. Must end with 3 greens.
A 'wallet' can be printed, cut, stapled and distributed if you have resources (awaiting link)
N.B. Note how there isn't currency any more, just balances which add up to zero.
Self issued credit
Users issue as many greens with their name on. All greens must return to issuers at the end.
N.B. Some players unable to redeem all their credit shows the need for governance!
Basic Minimum Income
Each user issued with 2 green at the start of the round
N.B. Clearly after a couple of rounds of this inflation would be a problem. Inflation is solved by taxation. This distributive dynamic flattens out inequalities as they arise.
BitCoin
Start with no greens are issued every few seconds to whoever is at the front of the queue. The queue is proof of work. Agree with the group before hand how often to issue coins.
N.B. Notice a slow start and let the round continue until you see people trading 2 greens for one card (inflation) Not ideal!
Democracy
players decide the rules
NB Don't worry if you never get around to actually trading.
Round 1 barter
Don't even talk about green paper.
Questions:
Round 2 Commodity money
If players have not eaten sweets, allow the exchange of sweets for cards
Questions:
Round 2 Chartalist money
Give about 3 greens to 1 player out of every 10, this should be much fewer greens than the marketplace needs.
Questions:
Round 3 Credit money
In the last round greens were scarce, but now players are invited to take as many greens as they like (in their own name)
Questions:
Round 4 Debt money
Players continue from the previous round but probably will not want to borrow any more!
Questions:
Open discussion
Try to leave plenty of time at the end. Usually there is LOTS to talk about!
What are the parallels with the prevailing money system?
How should money be issued fairly? To whom, how much and on what terms?
What is the role of government and what is the basis of its claim to govern markets?
Why can only the bank / government create green paper?
Theme by Danetsoft and Danang Probo Sayekti inspired by Maksimer
Add new comment