Teaching Macro Principles after the Financial Crisis

This is the authors' abstract. We don't add key points for this paper.

Recent events should force everyone who teaches macroeconomics (or finance, for that matter) to reconsider their curriculums. In this short article, the author shares his thoughts about what should and should not be changed in the way economists teach macro principles to beginning students. Two tradeoffs are paramount and must be faced by every instructor: (1) how much additional complexity must be and can be introduced in a principles course in which the students are relatively unsophisticated; and (2) although it is easy to think of new topics that recent events “demand” instructors add, it is much harder to think of topics to delete. Yet economists should understand the necessity of choice forced by (time) budget constraints.