Intermediate Macroeconomics without the IS-LM Model
AbstractThe IS-LM model is the primary model of economic fluctuations taught in intermediate-level undergraduate macroeconomics. Recent works by Taylor and Romer make a strong case for an alternative model, known as the aggregate demand-price adjustment (AD-PA) or the aggregate demand-inflation adjustment (AD-IA) model, as a better model of economic fluctuations. The author argues that the AD-PA model is superior to the IS-LM model for teaching about economic fluctuations in intermediate macroeconomics. He compares the perfomance of the two models in teaching about two important issues in current macroeconomics: the ineffectiveness of monetary policy in stimulating the 1990s Japanese economy and the rapid switch of the U.S. Federal Reserve from contractionary policy to expansionary policy in 2001.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Taylor and Francis Journals in its journal The Journal of Economic Education.
Volume (Year): 34 (2003)
Issue (Month): 3 (January)
Contact details of provider:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Bofinger, Peter & Mayer, Eric & Wollmershäuser, Timo, 2006.
"Teaching New Keynesian Open Economy Macroeconomics at the Intermediate Level,"
W.E.P. - WÃ¼rzburg Economic Papers
66, University of Würzburg, Chair for Monetary Policy and International Economics.
- Peter Bofinger & Eric Mayer & Timo Wollmersh�user, 2009. "Teaching New Keynesian Open Economy Macroeconomics at the Intermediate Level," Journal of Economic Education, Taylor and Francis Journals, vol. 40(1), pages 80-102, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.