ASU Students Collaborate with Bank of Russia Branch Experts to Strategize the Reduction of the Key Rate in a Business Simulation

Students majoring in Economics, Economic Security, Management, and Advertising and Public Relations participated in the business game Key Rate, held at the Faculty of Economics of the Institute of Life Quality Research and Education Cluster. The game is designed to explore the basic principles of monetary policy and to develop teamwork skills.
 
The key rate is the minimum percentage at which the Central Bank (CB) issues loans to commercial banks and the maximum percentage at which the CB accepts deposits from them. The higher the rate, the more expensive it is to borrow money, and the more profitable it becomes to keep funds in banks. Using the rate, the state controls inflation—by increasing the percentage, the CB reduces consumer demand, which slows down price growth; by decreasing it, the CB stimulates the economy, as loans become more accessible to consumers and businesses, potentially increasing investment and demand.
 
Students learned how the Bank of Russia determines the size of the key rate and how this influences price changes. They had the opportunity to participate in a simulated process of preparing proposals under given economic conditions. Moderators and mentors from the Adygea Branch of the Bank of Russia helped them understand the process.
 
The participants in the business game analyzed the situation, simulated the outcomes of changing the key rate, and made decisions aimed at maintaining a stable, low inflation rate—close to 4%. As a result, considering the opinions of each group, the teams reached a consensus decision.
 
Based on the results of two rounds, the best teams were named. All participants received certificates and prizes. Now, students can compare their perspectives more thoughtfully with the arguments of the Bank of Russia. The next meeting on the key rate will be held on June 6. You can follow the topic here.