The only fully modern macroeconomics text on the market, and the most accessible one for undergraduates.
Macroeconomics brings together up-to-date coverage of the ongoing economic crisis and the concepts behind macroeconomics today into a teachable, coherent whole. Today’s macroeconomics stresses the importance of monetary policy in the short run, and the need to treat the Fed in a realistic way. Macroeconomics uses the IS/MP model, and features the most modern treatment of growth, with complete, accessible coverage of the Romer model. Macroeconomics also includes complete coverage of the ongoing economic crisis, with two full chapters of discussion and analysis, updated examples throughout the text, and two brand new chapters on the “micro foundations” of macro (Consumption and Investment) influenced by the crisis.
The most modern coverage of macroeconomics
• Modern coverage of the Short Run. Macroeconomics uses a logical, straightforward short-run model that more accurately describes Fed behavior in the 21st century: IS/MP. Plus, Macroeconomics includes expanded coverage of the micro foundations of macro.
• Modern coverage of the Long Run and Growth. Macroeconomics presents modern growth theory as researchers in the last 25 years understand it, with complete, accessible coverage of the Romer model (the foundation of modern growth theory) and more accurate and appropriate presentation of the Solow model.
A problem-solving approach that works for students
• Worked Exercises walk students step-by-step through solutions to select end-of-chapter exercises.
• Even more problem-solving help with SmartWork. Fully editable and customizable, SmartWork guides students through problems from each chapter with Smart feedback.
Up-to-date coverage of the Economic Crisis
The Great Recession is the most important economic event since the Great Depression. Macroeconomics treats it with the importance it deserves, with up-to-date examples throughout the text and two complete chapters on the crisis and its impact.
Macroeconomics includes two chapters about the ongoing economic crisis:
• Chapter 10 is an overview of the events of the crisis, discussing at length the collapse of the housing market in the United States, the world savings glut, subprime lending, the packaging of mortgage-backed securities by the major investment banks, and the beginning of the current recession. The final section of this chapter presents important discussions on bank balance sheets and the role that leverage has played in the crisis; it concludes by describing the bank runs that beset the financial system in the first months of the crisis.
• Chapter 14 takes the fundamental information presented in Chapter 10 and then analyzes the economic crisis using the short-run models used in the text—IS/MP and Aggregate Supply/Aggregate Demand. The key innovation is the addition of a “risk premium” to the IS/MP and Aggregate Supply/Aggregate Demand models that explains the devastating separation that has occurred between the interest rate set by the Fed and the interest rate being charged in the economy itself. This chapter also discusses the dangers of deflation, policy responses to the crisis, monetary policy, money supply, the Fed’s balance sheet, how to repair the financial system, and the fiscal stimulus program.
Expanded coverage of the micro foundations of intermediate macroeconomics
Macroeconomics has greatly expanded its coverage of financial markets and fiscal policy, especially in the new chapters on the crisis. Also, the text has two new chapters, one on consumption and the other on investment, both of which reflect Chad Jones’s modern view of macroeconomics.
- Chapter 1: Introduction
- Chapter 2: Measuring the Macroeconomy
Part Two—The Long Run
- Chapter 3: An Overview of Long Run Economic Growth
- Chapter 4: A Model of Production
- Chapter 5: The Solow Growth Model
- Chapter 6: Growth and Ideas
- Chapter 7: The Labor Market, Wages, and Unemployment
- Chapter 8: Inflation
Part Three—The Short Run
- Chapter 9: An Overview of the Short Run
- Chapter 10: The Global Financial Crisis: Overview
- Chapter 11: The IS Curve
- Chapter 12: Monetary Policy and the Phillips Curve
- Chapter 13: Stabilization Policy and the AS/AD Framework
- Chapter 14: The Global Financial Crisis and the Short-Run Model
- Chapter 15: Consumption
- Chapter 16: Investment
- Chapter 17: The Government and the Macroeconomy
- Chapter 18: International Trade
- Chapter 19: Exchange Rates and International Finance
- Chapter 20: Parting Thoughts