In a couple of hours the Bank of Canada will do what it does eight times a year. It will set a temporary target for the overnight rate of interest. Will it raise it, lower it, or leave it the same? What will its decision depend on? How will its decision affect the Canadian economy?
If I were teaching intro macroeconomics to a bunch of students who were only interested in the here and now, like journalists who would be covering today's decision by the Bank of Canada, this is what I would teach: I would teach the Phillips Curve; some sort of IS curve; and discuss how the Bank of Canada would interpret the data using the Phillips Curve and IS curve and respond to the data to try to keep inflation at its 2% target.
I would teach something very similar to what Simon Wren-Lewis wants to teach.
But university teaching is not just about the here and now.