Macroeconomics

This text traces the history of macroeconomics, the evolution of macroeconomic thought, and the resulting theory and policy. The book places the various macroeconomic theories in the order in which they developed chronologically, and illustrates the similarities and differences of the models. The author admires all points of view and the result is a comprehensive, detailed, unbiased view of modern macroeconomic theory. Would you like a text that effectively compares and contrasts all the competing macroeconomic theories without espousing one particular point of view?

Features

• NEW—Perspectives boxes—Includes coverage of the following new topics: “Liquidity Trap in Japan,” “US Stock Prices, Rational Expectations or Irrational Exuberance?,” “Large US Current Account Deficits,” and “The Euro.”
• • Coverage of current economic events makes the text more relevant to students.
• NEW— Key terms defined in the margins—And included as end-of-chapter terms with page references.
• • Margin definitions help the student learn the terminology without having to flip to the glossary for definition of terms.
• NEW—Revised graphs—Many of the graphs have been revised and redrawn to show movement of a curve with arrows and shading.
• • Makes graphs more accessible to students.
• NEW—Notation—All notations have been revised to be consistent with standard practice/use.
• • By using standard practice notations the lecture and the text will flow together cohesively without confusing the students.
• Extensive treatment of monetary policy—Considers the optimal strategy for monetary policy, including intermediate targeting on monetary aggregates versus targeting on interest rates and movement to direct inflation targeting in many countries.
• • Monetary policy affects everyday life; extensive treatment will enhance the students' understanding.

I. INTRODUCTION AND MEASUREMENT.

• 1. Introduction.
• 2. Measurement of Macroeconomic Variables.

• 3. Classical Macroeconomics (I): Equilibrium Output and Employment.
• 4. Classical Macroeconomics (II): Money, Prices, and Interest.
• 5. The Keynesian System (I): The Role of Aggregate Demand.
• 6. The Keynesian System (II): Money, Interest, and Income.
• 7. The Keynesian System (III): Policy Effects in the IS-LM Model.
• 8. The Keynesian System (IV): Aggregate Supply and Demand.
• 9. The Monetarist Counterrevolution.
• 10. Output, Inflation and Unemployment: Monetarist and Keynesian Views.
• 11. New Classical Economics.
• 12. Real Business Cycles and New Keynesian Economics.
• 13. Macroeconomic Models: A Summary.

• 14. Exchange Rates and the International Monetary System.
• 15. Monetary and Fiscal Policy in the Open Economy.

• 16. The Money Supply Process.
• 17. Monetary Policy.
• 18. Fiscal Policy.

• 19. Long- and Intermediate-Term Economic Growth.
• 20. Consumption and Investment.
• 21. Money Demand.