The IS/RT/PC: A short run macroeconomic model -- implemented in a spreadsheet.
Simulate and discuss macroeconomic shocks and policy challenges.
Easily adapted to unfolding events and issues.
Presented in graduated levlels of complexity.
Supplemented with preparatory materials -- including videos.
The model is available below. But, before you download it, we recommend that you watch some of the preparatory videos -- so you know the ideas behind the model.
"A Spreadsheet based short-run macro model"
This video contains essential material -- the 'bare minimum' required to understand the model and how it works.
Click on image to download the spreadsheet model.
Click on button to see videos on how model depcits alternative scenarios.
Below, find some videos that contain background material that may not be available in your textbooks. These videos are highly recommended.
Learn more: To access a spreadsheet-based exercise and video on the Taylor Rule, both nominal and real, click the image above.
"Full-employment" output, potential output and the output gap."
Highly recommended -- clarifies terms, links both the level of employment and capacity utilization to the level of economic activity (important in business).
"The Inflation/Output Tradeoff."
Highly recommended: Shows how the Short-Run Aggregate Supply curve and the Phillips Curve are linked.
"Monetary Policy: The Real Taylor (RT) curve."
Highly recommended -- discusses concepts often not fully covered in textbooks.
"The LM and RT approaches to analyzing monetary policy: a brief comparison."
Highly recommended: compares and reconciles the Real Taylor (or RT) curve with the LM (liquidity / money ) curve that is presented in many textbooks.
"What is the natural real rate of interest?"
Highly recommended: discusses a topic that seldom appears in textbooks but is useful for the model.
"Using the multiplier model to derive the IS curve."
Recommended for review: Although this material is covered in most textbooks, the IS curve is discussed here in terms that are closer to the model.