Activity 01
Simulation Game: The Global Debt Cycle
Students represent the US, Germany, France, and Britain. They use 'currency' to pay debts and reparations. When the 'US' stops lending, students must try to keep their economies afloat, experiencing the domino effect of the crash.
Explain how the gold standard facilitated the spread of the depression globally.
Facilitation TipDuring the Simulation: The Global Debt Cycle, assign students roles (US banker, German factory owner, Latin American farmer) and provide loan recall cards to visibly show how debt chains collapse.
What to look forPose the question: 'How did the interconnectedness of global finance in the 1920s turn a US economic crisis into a worldwide depression?' Ask students to identify at least two specific mechanisms, such as loan recalls or trade disruptions, and explain their role.