Exchange Rate Explorer¶

Run the Exchange Rate Explorer MicroSim Fullscreen
Edit in the p5.js Editor

About This MicroSim¶

This MicroSim demonstrates how changes in the dollar's strength affect exchange rates with four major currencies (Euro, Japanese Yen, British Pound, and Chinese Yuan) and shows the real-world impact on prices for imports, exports, and travel. A color-coded strength meter ranges from weak to strong dollar, and a winners-and-losers panel explains who benefits and who is hurt at each level. Four real-world scenario cards show how dollar strength changes the actual cost of an iPhone in Japan, a BMW in the US, US wheat exports to China, and a London vacation.

How to Use¶

Adjust Dollar Strength -- Move the slider to change the Dollar Index from 70 (weak) to 130 (strong). The default of 100 represents the baseline.
Read Exchange Rates -- Observe how all four currency exchange rates change simultaneously as the dollar strengthens or weakens.
Check Winners and Losers -- When the dollar is strong (above 105) or weak (below 95), a panel appears explaining which groups benefit and which are hurt.
Review Price Impact Cards -- Four scenario cards show how dollar strength changes real prices: an iPhone purchase in Tokyo, a BMW imported to the US, wheat exports to China, and a London vacation.

Iframe Embed Code¶

You can add this MicroSim to any web page by adding this to your HTML:

<iframe src="https://dmccreary.github.io/economics-course/sims/exchange-rate/main.html"
        height="482px"
        width="100%"
        scrolling="no"></iframe>

Lesson Plan¶

Grade Level¶

9-12 (High School Economics)

Duration¶

10-15 minutes

Prerequisites¶

Basic understanding of currencies and exchange rates
Familiarity with the concepts of imports and exports
Knowledge of how prices affect consumer decisions

Activities¶

Exploration (5 min): Have students move the dollar strength slider to its extremes (70 and 130) and record the exchange rates for all four currencies. Ask them to identify which scenarios show prices going up and which show prices going down.
Guided Practice (5 min): Set the dollar to 120 (strong). Ask students: "You are planning a trip to London. Is this good or bad for you?" Then ask: "You are a farmer exporting wheat to China. Is this good or bad?" Discuss why a strong dollar creates both winners and losers.
Assessment (5 min): Students write a short analysis explaining why there is no such thing as a universally "good" or "bad" exchange rate, using at least two specific examples from the price impact cards.

Assessment¶

Can the student explain how a stronger dollar affects import and export prices in opposite ways?
Can the student identify who wins and who loses from dollar strength changes?
Does the student understand why exchange rates create tradeoffs rather than uniform benefits?