A SCENARIO-BASED LEARNING APPROACH TO STUDY THE EFFECTIVENESS OF ECONOMIC KNOWLEDGE IN SIMULATED MONETARY POLICY-MAKING PROCESSES

Abstract

This study examines the effectiveness of a scenario-based learning approach in enhancing learner’s understanding of economic knowledge through engagement in a simulated monetary policy–making process. The participants were Grade 11^th students studying the topic of the world financial crisis. The instructional intervention required learners to collaboratively analyze a simulated financial crisis scenario and formulate appropriate monetary policy responses. Collaboratively work, they examined relevant economic indicators, diagnosed the underlying causes and potential consequences of the crisis, and proposed policy instruments—such as, interest rate adjustments, and modifications to the money supply in order to achieve macroeconomic stabilization. A pretest–posttest design was employed to assess development in learner’s comprehension of monetary policy and core economic principles. The findings reveal that the majority of learners demonstrated a significant improvement in their conceptual understanding of monetary policy mechanisms, the role of central banks, and the broader dynamics of economic stabilization. These results suggest that integrating scenario-based learning with simulation activities constitutes an effective pedagogical strategy for promoting deeper conceptual understanding, analytical reasoning, and collaborative problem-solving skills in secondary-level economics education.