This is an applications-oriented text that demystifies the linkages between monetary and fiscal policies and key macroeconomic variables such as income, unemployment, inflation and interest rates. Specially written "newspaper" articles simulate current macroeconomic news on asset-price bubbles, exchange rates, hyperinflation and more. Exercises and diagrams, and a global perspective - incorporating both developed and emerging economies - make this a broadly useful, real-world oriented text on a complex and shifting subject.
Macroeconomic Policy 2nd Edition is an applications-oriented text designed for individuals who desire a hands-on approach to analyzing the effects of fiscal and monetary policies. MBA and Executive MBA students who appreciate the importance of monetary and fiscal analysis will find this text to be right on target. Financial analysts and individual investors who need to strip away economic myths and jargon and systematically examine and understand the effects of macro policies on variables such as inflation, output, employment and interest rates, will also find the book extremely useful.
A unique feature of this book is the extensive use of specially written "newspaper" articles designed to simulate current macroeconomic news. Each chapter contains exercises that enable the reader to relate specific underlined passages in these articles to the theory presented in preceding chapters. This distinctive approach ensures real-world applicability, and supporting diagrams further enable the reader to relate current economic news to the theoretical material discussed.
This edition incorporates a greater open-economy approach to macroeconomic analysis and employs a much more global focus:
- Existing cases and articles have been rewritten, and new ones added to reflect the current state of the major economies and their macropolicies.
- Housing and asset-price bubbles in the US, India, China, the UK, Iceland, and many countries in the Eurozone in the "post-subprime world" are analyzed.
- The rollercoaster ride of the dollar that began in 2007 is examined as well as the effect on currencies pegged to the US dollar.
- Global events including the hyperinflation in Zimbabwe of the late 2000's, causes and consequences of hot capital flows in Iceland, the trade-deficit-capital-inflow relationship with China, and the subprime saga are included as new articles.
- The "technology-driven new economy" and supply-side policy analyses for the US and the Eurozone are emphasized.
"Macroeconomic Policy is a lively and informative introduction to the diverse doctrines of macroeconomic theory."
Prof. Robert E. Lucas, Jr., Recipient of the 1995 Nobel Prize in Economics
"The notion of allowing the reader the freedom of choice between the Keynesian and Supply-Sider models for developed economies is fresh and radically different from most conventional macroeconomic texts. In addition, it is an honest approach...given that policymakers...still make policy based on assumptions behind each paradigm."
Dr. W. Michael Cox, Senior Vice President and Chief Economist, Federal Reserve Bank of Dallas, and co-author of Myths of Rich and Poor
