The BMW Model: A New Framework for Teaching Monetary Economics

Autor/inn/en	Bofinger, Peter; Mayer, Eric; Wollmershauser, Timo
Titel	The BMW Model: A New Framework for Teaching Monetary Economics
Quelle	In: Journal of Economic Education, 37 (2006) 1, S.98-117 (20 Seiten)Infoseite zur Zeitschrift PDF als Volltext Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Zeitschriftenaufsatz
ISSN	0022-0485
Schlagwörter	Economics Education; Macroeconomics; Models; Teaching Methods; Criticism + Suchen Sie Ihr Suchwort? Wirtschaftskunde; Makroökonomie; Analogiemodell; Teaching method; Lehrmethode; Unterrichtsmethode; Kritik
Abstract	Although the IS/LM-AS/AD model is still the central tool of macroeconomic teaching in most macroeconomic textbooks, it has been criticized by several economists. Colander (1995) demonstrated that the framework is logically inconsistent, Romer (2000) showed that it is unable to deal with a monetary policy that uses the interest rate as its operating target, and Walsh criticized that it is not well suited for an analysis of inflation targeting. The authors present a framework that develops the Romer approach into a very simple but, at the same time, comprehensive macroeconomic model. In spite of its simplicity, it can carry the main insights of the New Keynesian macroeconomics to an intermediate level and deal with issues like inflation targeting, monetary policy rules, and central bank credibility. (Author).
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Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2017/4/10