World of Business FHNW | School of Business | Academy of Art and Design | Electronic Studio of the Academy of Music

This two-minute film of the School of Business FHNW tells the story of money from barter to commodity money and coinage right up to banknotes.

The film shows how prices develop from the interaction between buyers and sellers using a specific sales situation similar to those which arise in a market economy. The film is suitable for use in the classroom.

The film illustrates the effect of compounding interest in an entertaining way. Based on the egg-laying hens (interest rate, the eggs in the movie), it is clear that one can either consume or reinvest an asset to generate higher returns. If the interest is applied repeatedly over a long period, the value of the asset increases.

The film shows a competitive situation with several vendors. As a result, vendors must consider the offer of fellow competitors when setting their prices. The providers are not free to set the prices they wish; prices are influenced by consumers’ purchasing behavior.

The film illustrates what inflation is, based on automobile manufacturing. Due to the larger supply of money, more money must be paid for the cars. As a result, they become more expensive.