MACROECONOMIC SIMULATIONS IN ECONOMIC EDUCATION OF FUTURE MANAGERS – EXPERIENCE OF THE FACULTY OF MANAGEMENT, UNIVERSITY OF WARSAW

The article presents macroeconomic simulation models used in teaching economics to future managers at the Faculty of Management, University of Warsaw. Economics is an important aspect of the general education of future managers. The global financial crisis and its effects on national economies proved the existence of gaps in teaching economics in managerial studies. It appears, however, that for example in macroeconomics, it is sufficient to equip students with appropriate theoretical economic knowledge, develop their skills of practical application of this knowledge to interpret phenomena and processes occurring in national and global economies, and teach them to independently draw practical conclusions already in real business. The use of computer simulations in teaching macroeconomics increases the activity of students in the classroom since they can work both individually and in groups. The proposed form of classes is attractive to students as it allows a better interpretation of complex macroeconomic interdependencies. Each simulation task has a clearly defined goal that should be achieved by applying an appropriate solution.

The macroeconomic computer simulation software IS-LM consists of seven modules used to teach macroeconomics. The article presents its selected elements, explaining how it works and what its simulation capacities are.

These models are also becoming more valid now in the face of the ongoing debate about the role of the state as an economic policy actor, in particular when a government intervention is necessary to mitigate the negative effects of the global financial crisis and to stimulate the economy. It is natural that the use of simulation models in teaching macroeconomics makes all students get actively involved and definitely increases their activity. Through simulations, they can analyse the impact of specific variables on equilibrium, assess the strength of their impact, and identify the specificity of how each described market operates separately. This can be done in a way that is comprehensible to students.

The experience gained with the didactic project that has been implemented at the Faculty of Management, University of Warsaw, for nearly six years lets us state that macroeconomic simulation models can be successfully exploited in teaching macroeconomics at all levels of managerial studies. They clearly increase students’ interest in macroeconomics.