Even if the IS-LM model is one of the backbones in the Keynesian economics, its explanation in textbooks has a few conceptual as well as expressional errors. Take the demand for money (Md) for example. Almost all textbook authors, including Keynes himself, explain that Md increases as the...

One reason many college students shun economics is ineffective education. A more systematic way of explanation, with standardization and consistency, would promote learning of economic theories. This paper suggests a new framework for effective economics education. It begins with clear...

Abstract. By definition, a stock such as “money supply (Ms)” is the consequence of human actions, never the cause. Nonetheless, an “unusual change” in the stock (ΔM/ΔT) can affect household activities yet to be made. Somehow macroeconomists use them interchangeably, and take a stock as...

Most authors give, in the beginning of their elementary textbook, a warning to readers against confusion between movements on versus shifts of the demand and supply curves. Oddly, later on in the same book they themselves fall in the very trap of such confusion. The so-called Giffen good and...

Money is neither a product nor an asset but the medium of exchange or “liquidity” as some call it. The money stock (M) can by no means affect the economy when separated from its velocity (V). Unfortunately, however, macroeconomists attach excessive meaning to “money” even though there is...