Jesus is the most prominent figure in the New Testament, unmatched in his remarkable ability to tell simple but riveting parables that captivate the imagination of his audience. His parables reveal his wisdom and thoughts on the kingdom of God and have made enormous impact on the society and culture of the West. In past centuries, numerous biblical scholars have devised critical methods of research trying to understand and interpret these parables. Their attempts have borne many fruits. This essay sets out to compare three major approaches adopted by modern scholars from a hermeneutical point of view, and intends to propose a new approach, called "the history of effects or history of consequences." I will then use the parable of the "Prodigal Son" as a testing case to show what fresh insights on the meaning of Jesus' parables and the procedure of biblical interpretation might be gained, if this new approach is taken.