The economic performances of the Eurozone look weaker than those of the United States over the period 1999-2006, in spite of the fact that the former applies more thoroughly the 'new macroeconomics' governance rules concerning public deficits and inflation control. The literature emphasizes Alan Greenspan's pragmatism when discussing the relative success of the Fed, but the reasons why pragmati...

Abstract We extend the canonical epidemiology model to study interaction between economic decisions and epidemics. Our implies that people cut back on consumption work reduce chances of being infected. These severity epidemic but exacerbate size associated recession. The competitive equilibrium is not socially optimal because infected do fully internalize effect their spread virus. In our bench...

A decade ago, a national conference of macroeconomic educators called for fundamental reform in the teaching of intermediate macroeconomics, urging instructors to employ a single analytic framework rather than ‘responding to the fragmentation of macroeconomics by teaching a separate model for each school of thought’ (Erekson, Raynold and Salemi, 1996; Salemi and Siegfried, 1999). This paper des...

Ideas taught at the macroeconomics principles level should satisfy two goals. First, they should be simple enough to be both understandable and memorable for the beginning student. Second, they should be consistent both with the modern economy and with the macroeconomic models of this economy that are used in practice for policy evaluation. There is no necessary conflict between these two goals...

Over the last decade, many central banks have adopted polices known as inflation targeting. To prepare intermediate level macroeconomics students to think about current policy issues, it is important to provide them with an introduction to the macroeconomic implications of inflation targeting. Unfortunately, the standard aggregate demandaggregate supply frameworks commonly used to teach interme...

The aim of this paper is to give an account of the unfolding of macroeconomics from Keynes to the present day. To this end, I use a grid of analysis resulting from the combination of two distinctions. The first is the Marshall-Walras divide, the second is the distinction between the Keynesian conceptual apparatus and the Keynesian policy cause. On the basis of these distinctions, I construct tw...

This essay argues that the history of macroeconomics during the twentieth century can be divided into three epochs. Pre-1940: a period of exploration, during which all the right ingredients were developed. But also a period where confusion reigned, because of the lack of an integrated framework. From 1940 to 1980: a period during which an integrated framework was developed—from the IS-LM to dyn...