Froyen:Macroeconomics

Series
Pearson
Author
Richard T. Froyen  
Publisher
Pearson
Cover
Softcover
Edition
10
Language
English
Total pages
432
Pub.-date
August 2012
ISBN13
9780273765981
ISBN
0273765981
Related Titles



Description

Macroeconomicstraces the history, evolution, and challenges of Keynesian economics, presenting a comprehensive, detailed, and unbiased view of modern macroeconomic theory.

Features

For courses in Intermediate Macroeconomics.

 

Macroeconomics traces the history, evolution, and challenges of Keynesian economics, presenting a comprehensive, detailed, and unbiased view of modern macroeconomic theory.


This book narrates the evolution of economic theory, presenting the most recent and modern developments, without glossing over the fundamental disagreements among macroeconomists on both theory and policy. 

 

  • Major theories are presented and compared.
  • Important agreements and differences are discussed.
  • Demonstrations of the controversies are presented, which center on well-defined theoretical differences.

 

Many of the post-1970 developments in macroeconomics have been the result of dissatisfaction with the Keynesian theory and the policy prescriptions that follow from it. In order for students to understand the evolution of macroeconomics, the author presents the history of Keynesian thought by:

 

  • Providing an up-to-date summary of the Keynesian position, including research that has come to be called the new Keynesian economics.
  • Offering a detailed analysis of challenges to the Keynesian position.

Several new additions have been added which include topics on monetary policy and economic growth:

 

·    Greater emphasis has been placed on interest rates and on inflation targeting strategies, with less of an emphasis on money.

·    The chapter on long-run growth has also been moved out of Part II and placed with the chapter on intermediate growth.

·    Both the neo-classical growth model and recent models of endogenous growth are discussed as well.

New to this Edition

Offer the latest edition

  • The financial crisis and deep recession of 2007-09 were the most serious macroeconomic shocks to hit the world economy since the Great Depression. The discussion of the theoretical models in Parts Two and Three of the book has been revised to reflect this experience. Many examples have been added to show how the models explain recent events. The way the crisis and deep recession affect an evaluation of the different macroeconomic theories is examined.
  • Chapters in Part Five on Economic Policy have been extended to consider policy responses to the financial crisis and recession. Throughout the book major policy initiatives are described and evaluated.
  • Chapters 16 and 17 have been revised to include more detail on banks and other parts of the financial sector. The freezing up of credit markets during the financial crisis is explained within the context of deposit and credit creation. Material has been added on the new monetary policy instruments and initiatives that come under the heading of quantitative easing. The zero-bound problem that led to the need for these new policy initiatives is explained.
  • Chapter 14 on the open economy includes an updated discussion of the evolution of current account imbalances over the 2007-11 period and new coverage of the European sovereign debt crisis.
  • The discussion of fiscal policy in chapter 18 now includes material on the United States public debt. The debt burden issue is considered.
  • New Perspectives boxes have been added and others expanded on topics including: the efficient markets hypothesis of asset pricing, the fiscal stimulus program (ARRA) of 2009, European bond interest rates, the financial sector in the Keynesian model, and the sequence of events during the recent financial crisis.

Table of Contents

PART ONE: INTRODUCTION AND MEASUREMENT 
Chapter 1: Introduction 
Chapter 2: Measurement of Macroeconomic Variables 13

PART TWO: CLASSICAL ECONOMICS AND THE KEYNESIAN REVOLUTION 
Chapter 3: Classical Macroeconomics (I): Equilibrium Output and Employment 
Chapter 4: Classical Macroeconomics (II): Money, Prices, and Interest 
Chapter 5: The Keynesian System (I):The Role of Aggregate Demand 
Chapter 6: The Keynesian System (II): Money, Interest, and Income 
Chapter 7: The Keynesian System (III): Policy Effects in the IS—LM Model 
Chapter 8: The Keynesian System (IV): Aggregate Supply and Demand 

PART THREE: MACROECONOMIC THEORY AFTER KEYNES 
Chapter 9: The Monetarist Counterrevolution 
Chapter 10: Output, Inflation, and Unemployment: Alternative Views 
Chapter 11: New Classical Economics 
Chapter 12: Real Business Cycles and New Keynesian Economics 
Chapter 13: Macroeconomic Models :A Summary 

PART FOUR: OPEN ECONOMY MACROECONOMICS 
Chapter 14: Exchange Rates and the International Monetary System 
Chapter 15: Monetary and Fiscal Policy in the Open Economy 

PART FIVE: ECONOMIC POLICY 
Chapter 16: Money, the Banking System, and Interest Rates 
Chapter 17: Optimal Monetary Policy 
Chapter 18: Fiscal Policy 

PART SIX: ECONOMIC GROWTH 
Chapter 19: Policies for Intermediate-Run Growth 
Chapter 20: Long-Run Economic Growth: Origins of the Wealth of Nations 


Instructor Resources