Principles of Macroeconomics by Howard J. Sherman and Michael A. Meeropol differs from other texts in that this book stresses far more the inherent instability of the macro-economy. The details of the business cycle come early and are integrated throughout the core of usual macro topics (C, I, G, X). The book puts inflation into its proper perspective by recognising that unemployment is the much greater threat to the economic well being of the vast majority of the people. Instead unemployment and its human toll are given far greater emphasis than other texts. The Keynesian model is fully developed; so is the statistical analysis of Wesley Mitchell. The neoclassical model is covered in both its historical evolution and in its implications for current policy debates. Finally, there is strong coverage of the Euro-zone crisis and its linkages to the United States.
"I can think of no better way to introduce students to the study of macroeconomics than to engage them in the current debate about what went wrong with the economy and how best to fix it. That's exactly what Principles of Macroeconomics: Activist vs. Austerity Policies does in chapter after chapter. Sherman is a master of the art of presenting the sources of the instability of the macroeconomy to a general audience. Meeropol carefully places their analysis in the context of the dramatic changes that have so affected our economic prospects, especially rising inequality and financial instability. Together, they offer students a clear and compelling analysis of our economic problems and why austerity policies will make them worse, not better." -- John Miller, Wheaton College
"The world economy is facing a critical crossroads. The Great Financial Crisis of 2007 has left many economies on their knees. Many governments--from lack of knowledge or misguided interests--have pursued savage austerity programs that are knocking down these economies and most of the people who inhabit them, rather than building them back up. Principles of Macroeconomics by Howard J. Sherman and Michael A. Meeropol is a crucial antidote to these destructive policies. Teachers and students who use this book will be well educated to understand and participate in these critical decisions that are having such a big impact on our lives." -- Gerald Epstein, Professor of Economics and Co-Director, Political Economy Research Institute (PERI)
"Sherman and Meeropol draw upon their close knowledge of real-world economic developments and policy issues to write a very important and timely macroeconomics textbook. In clear, understandable language, the authors trace the historical roots of modern capitalism, explain the central importance of the financial system to macroeconomic outcomes, and address the human costs of economic problems such as unemployment and inequality. They effectively critique the myth of a self-adjusting full-employment equilibrium and the folly of austerity policies. For a readable, relevant, and effective introduction to the modern macroeconomy, Sherman and Meeropol's text is indispensable." -- Martin H. Wolfson, University of Notre Dame
"There are two remarkable things about the book … First, the extraordinary clarity and accessibility of this work (despite its complex material), something that is characteristic of the work of both Sherman and Meeropol. Second, the entire book, as the subtitle indicates, is organized around the debate between radical and austerity economics. Hence, it takes on many of the most important issues related to the Great Financial Crisis in the process of trying to introduce students to basic macroeconomics. We cannot think of a better way to teach this material." -- Monthly Review
Part I: Basic Issues of Macroeconomics 1. What Is Macroeconomics? 2. Evolution of Capitalism 3. The Classical View of the Macro-Economy 4. The Keynesian Revolution 5. National Income Accounting 6. Classical and Keynesian Graphical Analysis 7. Introduction to Economic Growth 8. Introduction to Business Cycles Part II: Growth and Instability 9. Investment and Profit 10. The Multiplier 11. Employee Income and Profit 12. Consumer Spending 13. Credit and Interest 14. Housing Bubble and Financial Crisis 15. Government Spending, Taxes, and Deficits 16. The Trade Gap 17. Business Cycles Part III: The Global Macro-Economy 18. Globalization and the Spread of Instability 19. The Euro Zone and Currency Issues Part IV: Finance and Monetary Policy 20. Inflation 21. Monetary Policy and Financial Regulation 22. Debates over Monetary Policy Part V: Fiscal Policy and Full Employment 23. Fiscal Policy: How to Stimulate an Economy 24. Fiscal Policy: Austerians and Deficit Hawks vs. Stimulus 25. A Road to Full Employment