Teaching Post Keynesian Exchange Rate Theory

1For covering the Neoclassical approach, I really like Laurence Copeland’s textbook (Copeland 2005). My graphical representations of the Monetary and Dornbusch models are adapted from those he uses. 1 Teaching Post Keynesian Exchange Rate Theory Those who teach economics from a Post Keynesian perspective almost invariably report that students, particularly those with business experience, find our real-world oriented approach much more appealing than that represented by Neoclassicism. In fact, the main opposition to Post Keynesianism appears to be concentrated among those already indoctrinated in mainstream graduate schools. It is therefore important to introduce elements of Post Keynesian analysis as soon as possible–before students become completely turned off by economics! A common approach in classes taught by instructors with Post Keynesian leanings is to cover the standard Neoclassical material, add critique of the latter, and–if available–offer the Post Keynesian alternative.1 If the last does not exist then it can be a very unsatisfying experience for both teacher and student as the attack on the orthodox approach can sound very hollow. The