Perse students challenged to run British economy in competition
Four Perse Lower Sixth students tested whether they have what it takes to run the British economy in a competition at Cambridge University’s Faculty of Economics.
Tiago Lyra de Farias, Nick Pagonis, Robert Anderson and Flora Bates joined forces to represent The Perse at the inter-school event.
Following a talk about the country’s economy by Professor Tony Cockerill, the teams took part in the model economy game in which they had to set government spending levels, income tax and VAT rate changes and monetary supply levels over a 10-year period.
The goal was to control interest rates, manage the UK’s budget deficit and surplus, control unemployment and manage the productivity gap of the economy.
Having got their heads around complicated equations and sheets covered in figures, The Perse team came fifth overall.
With the help of Prof Cockerill, the data put together by the teams was analysed to show trends and causation for movements in the economy.
The students rounded off the event by being shown the world’s only working Phillips Machine – an analogue computer created by Bill Phillips in 1949 that uses hydraulics to model the workings of the British economy.