This article comes in three parts. Part 1 reviews a few pertinent facts about the stunning economic events that have occurred in the United States (and elsewhere) since 2007. The author chose these particular facts from among many for their relevance to the rest of the article. The next two parts take up, first, some of the key lessons that…

Argues for replacing the liquidity-preference approach with the loanable-funds approach in introductory macroeconomics courses. Claims the loanable-funds model allows students to see more clearly relationships between such economic concepts as fiscal policy and interest rates. Illustrates how this model can be used to describe the movement from…

Criticizes Belton M. Fleisher and Kenneth J. Kopecky's loanable-funds approach to teaching macroeconomics. Points out the technical and pedagogical shortcomings of the approach. Considers the instructional significance of the loanable-funds approach and discusses the world view associated with teaching from this perspective. (LS)

Addresses three points Mark A. Nadler made in his analysis of the authors' paper, "Loanable-funds Approach to Teaching Macroeconomics." Argues that Nadler's questions relate to intermediate or advanced analysis of macroeconomics, concluding that the loanable-funds approach is an appropriate elementary macro model. (LS)

Observes that the textbook explanation of the relationship between the international substitution effect and the downward slope of the aggregate demand curve is generally presented uncritically. Argues that the international substitution effect is sufficiently flawed and that it should be eliminated in teaching as a justification for the slope of…

The disadvantages inherent in the conventional concept of demand as it appears in undergraduate and graduate textbooks is shown, as well as how such disadvantages can be eliminated by redefining demand as a multivariable relationship between quantities demanded and other relevant variables. (JB)

Concludes that (1) the current infatuation with corporate bigness is void of credible empirical support; (2) disproportionate corporate size and industry concentration are incompatible with and destructive to good economic performance; and (3) structurally oriented antitrust policy must be revitalized to combat the burdens of corporate bigness.…

Illustrates how a simple discontinuity in an individual's demand curve, or inverse-demand curve, affects the shape of market aggregate curves. Shows, for private goods, that an infinitesimal change in quantity can lead to large changes in consumption patterns; for collective goods, the analysis suggests a theory of coalition building. (DSK)

Reviews aspects of the Bureau of Economic Analysis's 10th comprehensive revision reported in issues of the "Survey of Current Business." Focuses on the new method identified in the revision that provides an accurate characterization of changes in economic activity not affected by different relative prices in a new base year. (CMK)

Presents a graphical analysis of the exhaustible resource depletion problem. Applies Hotelling's "r percent rule" as a new approach that operates in an "N"-period context. Includes two figures illustrating the approach. (CFR)

Examines the case of bilateral monopoly in the context of joint profit-maximizing solutions. Asserts that, although bilateral monopoly is sometimes viewed as a theoretical model with few real-world applications, the elements of negotiations it contains form the basis for contracts between input sellers and input buyers. (CFR)

Identifies economic issues that confronted the United States in the late 1980's and discusses how the president might deal with them. Highlights the following issues: recession, rising price levels, the budget deficit, international trade imbalance, and revival of U.S. long-term growth. (GEA)

Discusses real business cycle analysis, growth theory, and other economic concepts in the context of the rational expectations revolution in macroeconomics. Focuses on post-1982 research. Concludes that the rejuvenation of growth analysis is an encouraging development because it could lead to changes in welfare policy. (CFR)

Contends that the production possibilities frontier (PPF) appears only in preliminary discussions of scarcity in principles textbooks. Illustrates how linking the Keynesian cross and the production possibilities frontier can yield worthwhile results while maintaining analytical simplicity. (CFR)

Contends that it is widely believed that cheap labor in poor countries attracts foreign investors. Asserts that historical evidence indicates that past patterns of direct foreign investment in poor countries are inconsistent with the cheap-labor argument. Includes two figures and one table. (CFR)