Macroeconomic Theory and Macroeconomic Pedagogy

List of Figures and Appendices Notes on Contributors Foreword; C.E.Walsh Macroeconomic Theory and Macroeconomic Pedagogy: An Introduction; G.Fontana& M.Setterfield PART I: THE 3-EQUATION NEW CONSENSUS MACROECONOMICS MODEL Teaching Intermediate Macroeconomics Using the 3-Equation Model; W.Carlin& D.Soskice Bringing Undergraduate Macroeconomics Teaching Up to Date; S.Wren-Lewis Monetary Policy Analysis: An Undergraduate Toolkit; J.S.Chadha Rescuing the LM Curve (and the Money Market) in a Modern Macro Course; R.Tamborini The New Consensus in Macroeconomics: A Critical Appraisal; P.Arestis Complexity and Macro Pedagogy: The Complexity Vision as a Bridge between Graduate and Undergraduate Macro; D.Colander& C.Rothschild PART II: AN ENDOGENOUS-MONEY THEORY AMENDMENT OF THE NEW CONSENSUS MACROECONOMICS MODEL Teaching Macroeconomics When the Endogeneity of Money is Taken Seriously; M.Sawyer A Simple (and Teachable) Macroeconomic Model with Endogenous Money; G.Fontana& M.Setterfield Money and Banking in a Realistic Macro-Model; P.Howells PART III: FINANCIAL FRAGILITY, LIQUIDITY PREFERENCE, UNEMPLOYMENT HYSTERESIS AND OTHER AMENDMENTS Taming the New Consensus: Hysteresis and Some Other Post-Keynesian Amendments; M.Lavoie Minsky Meet Wicksell: Using the Wicksellian Model to Understand the Twenty-First Century Business Cycle; C.L.Weise& R.J.Barbera Macroeconomics Meets Hyman P. Minsky: The Financial Theory of Investment; L.Randall Wray& É.Tymoigne PART IV: THE REAL INTEREST RATE, INCOME DISTRIBUTION, AND ALTERNATIVE VIEWS OF STABILIZATION POLICIES Teaching the New Consensus Model of 'Modern Monetary Economics' from a Critical Perspective: Pedagogical Issues; J.Smithin A Post Keynesian Alternative to the New Consensus Model; E.Hein& E.Stockhammer The Central Banker as Regulator of Conflict: A 'Reversed' Reading of the Solow and New Consensus Model; E.Brancaccio Institutions, Expectations and Aggregate Demand; J.Ferreiro& F.Serrano

'The 2007/8 financial crisis starkly revealed the limitations of the three equation 'New Consensus' macroeconomic model. This model abstracts by assumption from default and credit risk, and hence has no room for issues relating to financial intermediation and liquidity, a 'fair weather' model. In this book the authors outline this and other drawbacks of the current mainstream model, and make a good start in amending this in ways which both come closer to reality and can be the basis for undergraduate teaching.' - Charles A.E. Goodhart, Emeritus Professor of Economics, and Member Financial Markets Group, London School of Economics and Political Science, UK; former Bank of England's External Member, Monetary Policy Committee, UK'All who teach graduate macroeconomics will benefit from Fontana and Setterfield's efforts to broaden the scope of formal pedagogy and to incorporate Keynesian and Post Keynesian insights into a disciplined teaching framework.' - James K. Galbraith,Professor at the Lyndon B. Johnson School of Public Affairs and at the Department of Government, University of Texas, at Austin; former Executive Director of the Joint Economic Committee, Congress of the United States, and guest scholar at the Brookings Institution, USA'Macroeconomic theory has developed rapidly in the last two decades, but undergraduate teaching and textbooks have not kept up. This timely book surveys approaches to improving pedagogy, focusing on a 3-equation model that is similar in spirit to cutting-edge macro theories but accessible to undergraduates. In addition to its theoretical appeal, the model is better than traditional textbook models for analyzing real-world economic fluctuations.' - Larry Ball, Professor of Economics, Johns Hopkins University, USA