A nutty model for teaching macroeconomic models Online publication date: Sun, 17-Dec-2017
by Kevin W. Capehart
International Journal of Pluralism and Economics Education (IJPEE), Vol. 8, No. 3, 2017
Abstract: This pedagogical paper draws attention to Basil Moore's peanut multiplier theory of income determination and argues that it is a useful tool for teaching macroeconomic models and for critical understanding them. The peanut multiplier theory can be used to teach the essential elements of any macro model, the manner in which the internal logic of a model can be explored, and the manner in which external critiques of a model can be formulated, all within an ideologically neutral yet still memorable context. A critical understanding of the peanut multiplier theory also lays the foundation for a critical understanding of standard macro models like the simple Keynesian theory of income determination, quantity theory of money, and money multiplier theory. Student feedback provides evidence of the effectiveness of using the peanut multiplier theory to teach macro models.
Online publication date: Sun, 17-Dec-2017
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Pluralism and Economics Education (IJPEE):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email email@example.com