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Teaching Undergraduate Macroeconomics with the Taylor-Romer Model

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  • Paul Turner

    (Loughborough University)

Abstract

This paper sets out a version of the Taylor-Romer model of short-run macroeconomic equilibrium which can be used for teaching undergraduate economics principles courses. The aim is to generate a model with the proven advantages of the IS-LM framework but with a more realistic description of central bank behaviour. The paper then provides a dynamic analysis of longer-term adjustment using a phase diagram but without the need for a formal mathematical derivation.

Suggested Citation

  • Paul Turner, 2006. "Teaching Undergraduate Macroeconomics with the Taylor-Romer Model," International Review of Economic Education, Economics Network, University of Bristol, vol. 5(1), pages 73-82.
    • Handle: RePEc:che:ireepp:v:5:y:2006:i:1:p:73-82
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    File URL: https://www.economicsnetwork.ac.uk/iree/v5n1/turner.pdf
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    References listed on IDEAS

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    1. Tobin, James, 1975. "Keynesian Models of Recession and Depression," American Economic Review, American Economic Association, vol. 65(2), pages 195-202, May.
    2. William Poole, 1969. "Optimal choice of monetary policy instruments in a simple stochastic macro model," Special Studies Papers 2, Board of Governors of the Federal Reserve System (U.S.).
    3. John B. Taylor, 2000. "Teaching Modern Macroeconomics at the Principles Level," American Economic Review, American Economic Association, vol. 90(2), pages 90-94, May.
    4. Ross Guest, 2003. "Modifying the Taylor-Romer Model of Macroeconomic Stabilisation for Teaching Purposes," International Review of Economic Education, Economics Network, University of Bristol, vol. 2(1), pages 55-68.
    5. David H. Romer, 2000. "Keynesian Macroeconomics without the LM Curve," Journal of Economic Perspectives, American Economic Association, vol. 14(2), pages 149-169, Spring.
    6. David Colander, 1995. "The Stories We Tell: A Reconsideration of AS/AD Analysis," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 169-188, Summer.
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    Cited by:

    1. Pavel Kapinos, 2011. "Liquidity Trap in an Inflation-Targeting Framework: A Graphical Analysis," International Review of Economic Education, Economics Network, University of Bristol, vol. 10(2), pages 91-105.
    2. Anthony J. Makin, 2019. "Optimal Monetary Policy in Inflation Targeting Open Economies," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 48(1), February.
    3. Arnold, Ivo J.M., 2023. "Teaching economics of monetary union with the IS-MP-PC model," International Review of Economics Education, Elsevier, vol. 44(C).
    4. Peter Davies & Ross Guest, 2010. "What effect do we really have on students' understanding and attitudes? How do we know?," International Review of Economic Education, Economics Network, University of Bristol, vol. 9(1), pages 6-9.

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