Teaching economics of monetary union with the IS-MP-PC model

Research output: Contribution to journalArticleAcademicpeer-review

144 Downloads (Pure)

Abstract

This paper explains how the three-equation IS-MP-PC-model can be adapted to discuss macroeconomic adjustment in a monetary union. It introduces a two-country version that is used to illustrate the difficulties of macroeconomic adjustment in the presence of asymmetric demand and financial shocks. The level of analysis does not go beyond the level of a course in introductory macroeconomics. The adaption can be used by instructors in euro area countries to bridge the gap between the standard model and the macroeconomic issues that these countries face or by any instructor who wishes to analyze shocks in regions sharing the same currency. It also allows instructors to debate current policy issues with their students and thus motivate them for the field.

Original languageEnglish
Article number100276
Number of pages10
JournalInternational Review of Economics Education
Volume44
Early online date26 Sept 2023
DOIs
Publication statusPublished - Nov 2023

Bibliographical note

Publisher Copyright:
© 2023 The Authors

Fingerprint

Dive into the research topics of 'Teaching economics of monetary union with the IS-MP-PC model'. Together they form a unique fingerprint.

Cite this