Signal
Bond yields
Government borrowing costs rise when investors worry about inflation, debt, deficits, or credibility.
Finance Lab
Markets are not a mini-game. They react to your policy.
Finance Lab connects macroeconomics with stocks, bonds, exchange rates, investor confidence, and real household effects.
Play A Finance ScenarioInvestor View
What citizens and investors feel
Inflation reduces purchasing power.
Higher rates make mortgages and business loans more expensive.
Weak confidence can lower stocks and raise bond yields.
Signal
Exchange rate
The currency strengthens when investors trust policy and weakens when inflation or debt risk rises.
Signal
Stock market
Stocks respond to expected profits, growth, interest rates, and confidence.
Signal
Banking stability
Stress rises when credit gets tight, unemployment rises, or government bond losses hit banks.
Signal
Household savings
Inflation reduces purchasing power, while higher interest rates can improve savings returns but make loans costlier.
Signal
Household debt
Debt rises when credit is easy and confidence is high. It becomes dangerous when rates, unemployment, or defaults rise.
Signal
Loan affordability
Borrowing is easier when rates are low and banks are healthy, but easy loans can create debt fragility.
Signal
Credit rating
A rating summarizes repayment risk. High debt, weak credibility, and banking stress can push ratings down.
Signal
Investor confidence
Confidence falls when policy looks unsustainable and improves when inflation, debt, and growth are credible.
Policy Reactions
Examples players see inside the simulation.
| Policy move | Likely market reaction |
|---|---|
| Raise interest rates | Inflation may fall, the currency may strengthen, stocks may weaken, and unemployment can rise. |
| Increase spending | Growth and approval can improve, but inflation, debt, and bond yields may rise. |
| Buy bonds | Yields may fall and liquidity improves, but too much support can weaken credibility and currency value. |
| Let debt rise too far | Credit rating pressure grows, bond yields rise, and future spending becomes harder. |
| Strengthen bank regulation | Banking stability improves, but banks may lend less aggressively. |
| Loosen consumer credit | Consumption can rise now, while household debt and default risk rise later. |
| Introduce deposit insurance | Bank-run risk falls, but the government carries more responsibility if banks fail. |
Finance Cases
Scenario types the simulator now supports.
These cases connect financial literacy with macro outcomes: banks, credit, savings, markets, currency, debt, and confidence.
Banking Crisis
Risky lending damages banks. Regulation, liquidity, and deposit insurance can restore trust, but bailouts raise debt.
Stock Market Crash
Equities fall when expected profits, confidence, or liquidity collapse. Policy communication and stability matter.
Debt Crisis
High debt can push bond yields up and weaken credit ratings, making every future budget choice harder.
Currency Crisis
A falling currency can raise import prices and inflation. Rates, credibility, and external balance all matter.
Household Debt Crisis
Easy credit supports spending first, then defaults can hit banks and jobs.
Inflation And Savings
Cash savings lose purchasing power when inflation is high. Real return matters more than nominal return.
Investment Bubble
Fast-rising asset prices can hide leverage and risk until expectations reverse.
Stock And Bond Education
A mini-mode idea for risk, return, inflation, and diversification.
This is not a trading casino. It teaches why different assets react differently when inflation, rates, currency pressure, and confidence change.
Stable in nominal terms, but inflation can quietly reduce purchasing power.
Higher potential return, higher short-term volatility, and sensitive to confidence and rates.
Usually steadier than stocks, but prices and yields react to interest rates and credit risk.
Can hedge currency or inflation stress, but does not guarantee income.
Reduces dependence on one asset and makes the result less fragile.