In the aftermath of the Great Depression, there was turmoil in the field of Macroeconomics, which resulted in the Keynesian ‘revolution’. However, the current Great Recession, the worst crisis that capitalism has faced since then, has failed, at least so far, to generate a change in the teaching and practice of Macroeconomics. This seems bizarre as if nothing has happened and the economists are just going about doing business as usual. Without going into the politics of why this is so, I focus in this paper on how Macroeconomics ought to be taught to students at the intermediate level, which gives them an overall perspective on the subject.
Unlike my other posts, this is slightly formal and academic in nature so I would like to apologise to the readers in advance.