Publication: Journal of Economic Education
Volume: Volume 18, No. 1
Issue: Winter 1987
Pages: pp. 19-33
Author(s): Belton Fleischer and Kenneth Kopecky
Title: The Loanable-funds Approach to Teaching Principles of Macroeconomics
Abstract: The authors argue that the loanable-funds approach is substantively equivalent to the more widely used IS-LM pedagogy but is simpler and more readily comprehended by students. They demonstrate its use for analyzing the macroeconomic goods, money, and labor market interactions and policy applications.