Macroeconomics, 4th. ed.

Abstract

The first edition of this textbook was published at a time of calm in the U.S. and world economies. In fact, at the time (in 2005), many economists believed that the socalled Great Moderation, an era of relative stability that began in the mid-1980s, would continue indefinitely. We chose, nonetheless, to put recessions and the policies governments use to fight them front and center, believing that the business cycle is still the core issue in macroeconomics. And subsequent events have both validated that decision and provided plenty of material to incorporate in each new edition. And so it is with this edition. Above all, Robin and I hope that this fourth edition of Macroeconomics leaves students with the sense that they have learned a lot about the world they’re living in, but we also believe that hard times in the world economy have, perversely, greatly improved our ability to teach macroeconomics. We can now vividly illustrate that macroeconomics really does make sense of the world and that it really matters. We hope you share our enthusiasm.