Macroeconomics and the world economy in one lecture: a didactic primer

Dirk Ehnts

International Journal of Pluralism and Economics Education, 2020, vol. 11, issue 2, 149-159

Abstract: In the aftermath of the great financial crisis (GFC) a consensus has formed that economics needs to be reinvented, and most especially macroeconomics. In this article, a first lecture of macroeconomics provides students with a sound foundation. Using a graphical model we demonstrate that when net expenditures increase, the world economy expands with rising employment; and when net expenditures slow, so does the world economy. At the margin, expenditures can only be increased by injections of net deposits created by an increase in debt. Concluding this first lecture, students take away the insight that (rising) expenditures and debt are necessary for the world economy to grow, and that both the rate of unemployment and the rate of inflation are correlated to the change in debt.

Keywords: monetary circuit; fiscal policy; monetary policy; sectoral balances; macroeconomics; saving; financial flows; balance sheets. (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=111288 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijplur:v:11:y:2020:i:2:p:149-159

Access Statistics for this article

More articles in International Journal of Pluralism and Economics Education from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().