Fiscal challenge: An experiential exercise in policy making

In this article, the authors introduce a pedagogical innovation that is designed to enhance 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 United States on a sustainable fiscal path. The current incarnation of the competition, which is referred to as the Fiscal Challenge, confronts the students with the specific task of stabilizing the U.S. Federal Debt-to-GDP ratio. The Fiscal Challenge currently is being implemented as a nationwide, inter-university, extracurricular activity; however, it can easily be customized to fit within a traditional classroom setting.