Access our Webinar Recording! Teaching Business Cycles - A Modern Approach

nbrady
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Teaching Business Cycles - A Modern Approach

The macroeconomic model that we inherited from the 1960s no longer works for today's economy or today's students. In this talk, Professor Wolfers will introduce two modern approaches. The first is to switch the standard model with a method of teaching AD-AS that both reflects the modern economy and links with modern macroeconomics. The second approach replaces the AD-AS model by emphasizing the method that modern macroeconomists take, focusing on an IS-MP analysis (an updated version of IS-LM), which connects to the Phillips Curve. The key, Wolfers argues, is to provide an authentic account of the modern macroeconomy that reflects ongoing policy discussions, media debates, and higher-level classes..

 

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Darlenelang
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New Contributor

It sounds like Professor Wolfers is advocating for updating the way macroeconomics is taught to reflect the changes and developments in the economy since the 1960s. He proposes two modern approaches to teaching macroeconomics: replacing the traditional AD-AS (Aggregate Demand-Aggregate Supply) model with a method that better reflects the modern economy and is more closely linked to modern macroeconomic theory, and focusing on an IS-MP (Investment-Savings and Monetary Policy) analysis instead, which better connects to the Phillips Curve. The goal is to provide students with a more accurate and relevant understanding of the macroeconomy and its current policy discussions and debates. Optimum Mail