We develop a classroom experiment on exchange rate determination appropriate for undergraduate courses in macroeconomics and international economics. Students represent citizens from different countries and need to obtain currency to purchase goods. By participating in a sealed bid auction to...

People underestimate long-term growth in savings because they linearise exponential growth - a phenomenon known as exponential growth bias (EGB). This bias has implications for multiple financial decisions, particularly those relating to pensions. We hypothesised that underestimation might be...