Teaching the IS-LM Model Through a Simulation Program

The IS-ML model is a basic tool in teaching short-term macroeconomics. Teaching is essentially done through the use of graphs. However, the way these graphs are traditionally taught does not allow the learner to easily visualise changes in the curves. The IS-LM simulation program overcomes the difficulties in understanding the curves used in the model because, through it, the students can visualise the changes in these curves when the model’s parameter values are modified. This simulation program was used during the 2009/10 academic year by a group of students of macroeconomics at the University of Seville. The average score obtained by these students in a model comprehension test was significantly higher than that of the students attending traditional classes.