Fiscal Challenge: An Experiential Exercise in Policy Making

In this article we introduce a pedagogical innovation that is designed to enhance our students' understanding of fiscal policy, in general, and the national debt and deficit, in particular. The innovation leverages the educational advantages offered through a competitive environment by pitting teams of students against one another with the goal of devising the best plan to put the U.S. on a sustainable fiscal path. The current incarnation of the competition, which is referred to as the Fiscal Challenge (FC), confronts the students with the specific task of stabilizing the U.S. Federal Debt to GDP ratio. This specific task may change from one competition season to the next, potentially adjusting with the economic climate and interests of the participants. The FC currently is being implemented as a nationwide, inter-university, extracurricular activity; however, it can easily be customized to fit within a traditional classroom setting