What are we teaching and why it matters: A survey of the Australian and New Zealand university macroeconomics curriculum in a post-GFC, ecologically stressed world

Abstract

The Global Financial Crisis appears to have brought a period of reflection, and some uncharacteristic humility, on the part of the economics profession. The calls for changes to what is taught now come from within the ranks of the mainstream. Encouraged by this, we have examined first year macroeconomics courses taught in 2013 in Australia, New Zealand and some United States universities. We wanted to know whether it is still true, as Herman Daly said in 1996, that economics textbook writers (and teachers) still think that macroeconomics has nothing to do with the environment. We found that roughly one quarter of introductory macroeconomics courses appear to include at least one aspect of environmental sustainability. No university in our survey yet teaches an introductory macroeconomics course that would delight ecological economists. By contrast, it became clear that at least three quarters of courses and textbooks now include discussion of the Global Financial Crisis. We think the disparity matters. Wide coverage of the Crisis introduces students to the notion of the fragility of the financial system. However, for our policymakers and business leaders of tomorrow, the increasing fragility of the natural environment appears to remain a blind spot. Both are important, especially since escaping recession and paying down high global debt levels will inevitably mean renewed efforts to achieve high rates of economic growth. Unless an understanding of sustainability is taught, we will have addressed one crisis, while hastening the next.