Consumption and Savings Decisions: Teaching The Precautionary Motive In Intermediary Macroeconomics Courses (Barros, Gomes, & Calcini)May 27, 2021
Interactive Web-based Simulations to Teach Econometrics: Making Abstract Concepts Tangible (Byker, Gregg, & Mortimer)June 7, 2021
Treasury Inflation-Protected Securities (TIPS) are useful for teaching how the microeconomic tools of consumer choice are related to key macroeconomic variables like inflation, real interest rates, and monetary policy. This paper applies the contingent-states model of optimal choice to tradeoffs between regular U.S. Treasury bonds and inflation-protected bonds, providing a new application for bridging intermediate micro and macro. As financial data and contemporary policy actions unfold during a semester, students can connect budget constraints and indifference curves to personal financial decisions and the larger macroeconomic environment.