Description

Presentation

MacSim is a simulation software constituting a pedagogical tool for teaching economic policy in European and international macroeconomics (MacSim 2). Its principle is to place the participants in the situation of “public decision-makers” (government and central bank). The simulated national economies correspond, in a stylized way, to a certain number of countries of the European Union (Germany, France, Belgium, Italy, etc.) and other countries such as Japan, the United States.MacSim is a simulation software constituting a pedagogical tool for teaching economic policy in European and international macroeconomics (MacSim 2). Its principle is to place the participants in the position of “public decision-makers” (government and central bank). The simulated national economies correspond, in a stylized way, to a number of countries of the European Union (Germany, France, Belgium, Italy, etc.) and other countries such as Japan, the United States.

Allows macroeconomic simulations to be carried out. It is a powerful simulator that allows participants to assimilate the mechanisms of open macroeconomics and international economics and, above all, to understand the interest and stakes of European construction and economic policy coordination.
MacSim illustrates the advantages of a simultaneous monetary and fiscal coordination in the case where the simulated economies are subject to an external shock (demand, price or exchange rate) that is inevitably asymmetrical due to the very different degrees of openness of these economies to the “rest of the world”.

Decisions

For each economy, participants can use eleven levers of macroeconomic policies :

1. Employment in Public Administration
2. Average wage gap between public and private jobs
3. Actual aggregate demand from Public Administrations
4. Social benefits received by households
5. Average direct household income tax rate
6. Employee social contribution rates
7. Employers’ social contribution rates
8. Average corporate tax rate
9. Subsidy rate for companies
10. Average VAT rate
11.Average tax rate on imports from each country or from the Rest of the World

The Macsim simulation is adapted to the Master 2 level in economics.