KBSU students developed a joint decision on the key rate

The Institute of Law, Economics and Finance of the Kabardino-Balkarian State University named after Kh.M. Berbekov held a business game «Key Rate», during which students improved their knowledge of macroeconomics and monetary policy. The game for future economists was conducted by experts from the Bank of Russia — National Bank for the Kabardino-Balkarian Republic.

The «economic rebus» is based on a model of the process of preparing and making a decision on the key rate — the main instrument of monetary policy.

The Bank of Russia employees told the students that the bank makes decisions on the level of the key rate eight times a year to achieve the goal of monetary policy — maintaining annual inflation near 4%. Each meeting of the Board of Directors is preceded by a lengthy process of preparing materials. It is this process that the game reproduces in a simplified version.

The children learned how the consumer price index is calculated and the causes of inflation both from the demand side and from the supply side.

During the game, students had to assess the economic situation and offer recommendations for maintaining or changing the key rate to maintain a stable low inflation in the Russian economy.

There were no losers in this business game. The children successfully navigated the economic situation. They systematized the information they received and made the right decision. This is a very interesting and useful experience,

— summed up the organizer of the game, Associate Professor of the Department of Economics and Accounting and Analytical Systems of KBSU Zalina Gergova.