A Computational Approach to Teaching the IS-LM Model

We present a computational tool that aids the teaching of the popular macroeconomic IS-LM model. The tool presents the constituent parts of the model and allows the study of their properties in isolation. It also illustrates how these components are combined in the complete model and what are the resulting aggregate properties. Thanks to the implementation in IPython in the Jupyter Notebook, the model can be explored interactively in both graphical and numerical modes.