IDEAS home Printed from https://ideas.repec.org/a/che/chepap/v15y2002i1p4-7.html
   My bibliography  Save this article

A Simulation Approach to the Taylor-Romer Model of Macroeconomic Stabilisation Policy

Author

Listed:
  • Ross Guest

    () (Griffith University, Queensland, Australia)

Abstract

This paper shows how spreadsheet simulations can be used to teach the Taylor-Romer model of macroeconomic stabilisation policy. This model is both a simpler and more realistic description of the modern implementation of monetary policy than the traditional IS-LM-AS model. The simulation exercises are quite appropriate at the introductory (or principles) level. One modification is proposed to the model; that is, the replacement of the level of output by the growth rate of output. This allows for a direct illustration of the short run trade-off between growth and inflation in the model.

Suggested Citation

  • Ross Guest, 2002. "A Simulation Approach to the Taylor-Romer Model of Macroeconomic Stabilisation Policy," Computers in Higher Education Economics Review, Economics Network, University of Bristol, vol. 15(1), pages 4-7.
  • Handle: RePEc:che:chepap:v:15:y:2002:i:1:p:4-7
    as

    Download full text from publisher

    File URL: http://www.economicsnetwork.ac.uk/cheer/ch15_1/guest.htm
    Download Restriction: no

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:che:chepap:v:15:y:2002:i:1:p:4-7. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Martin Poulter). General contact details of provider: http://www.economicsnetwork.ac.uk/cheer .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.