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What should be taught in Intermediate Macroeconomics?

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Abstract

A lack of consensus remains on what should form the theoretical core of the undergraduate intermediate macroeconomic course. In determining how to deal with the Keynesian/classical divide, instructors must decide whether to follow the modern approach of building macroeconomic relationships from microfoundations, or to use the traditional approach based on aggregate models of the macroeconomy. In this article, the authors discuss the advantages and shortcomings of each approach in the context of course objectives. Because there is significant heterogeneity in textbook coverage, the authors summarize some of the approaches taken in current intermediate-level textbooks, which should serve as a useful starting point for new instructors. The authors also discuss how each approach can be extended to analyze the recent recession in the United States.

Suggested Citation

  • Simpson, Nicole & de Araujo, Pedro & O'Sullivan, Roisin, 2012. "What should be taught in Intermediate Macroeconomics?," Working Papers 2012-01, Department of Economics, Colgate University.
  • Handle: RePEc:cgt:wpaper:2012-01
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    File URL: http://commons.colgate.edu/cgi/viewcontent.cgi?article=1032&context=econ_facschol
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    Cited by:

    1. Jonathan E. Alevy & Paul Ronald Johnson, 2013. "A Classroom Financal Market Experiment," Working Papers 2013-01, University of Alaska Anchorage, Department of Economics.
    2. Mike Aguilar & Daniel Soques, 2015. "Bridging the Classroom Gap between Asset Pricing and Business Cycle Theory," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 21(4), pages 433-452, November.
    3. repec:kap:iaecre:v:21:y:2015:i:4:p:433-452 is not listed on IDEAS
    4. Martin Kniepert, 2014. "Die (Neue) Institutionenökonomik als Ansatz für einen erweiterten, offeneren Zugang zur Volkswirtschaftslehre," Working Papers 552014, Institute for Sustainable Economic Development, Department of Economics and Social Sciences, University of Natural Resources and Life Sciences, Vienna.

    More about this item

    Keywords

    AD/AS; intermediate macroeconomics; IS/LM; microfoundations; neoclassical; new Keynesian;

    JEL classification:

    • A22 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Undergraduate

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