2nd Edition

Rethinking Macroeconomics A History of Economic Thought Perspective

By John F. McDonald Copyright 2022
    258 Pages 26 B/W Illustrations
    by Routledge

    258 Pages 26 B/W Illustrations
    by Routledge

    Macroeconomics has always played host to contesting schools of thought, but recent events have exacerbated those differences. To fully understand the subject, students need to be aware of these controversies. Rethinking Macroeconomics: A History of Economic Thought Perspective introduces students to the key schools of thought, equipping them with the knowledge needed for a true understanding of today’s economy.

    The text guides the reader through multiple approaches to macroeconomic analysis before presenting the data for several critical economic episodes, all in order to explore which analytical method provides the best explanation for each event. It covers key background information on topics such as the basics of supply and demand, macroeconomic data, international trade and the balance of payments, the creation of the money supply, and the global financial crisis. This anticipated second edition contains new chapters on Modern Monetary Theory, the Japanese economy, the European Union, and the COVID-19 crisis, bringing the story up to date and broadening the international coverage.

    Offering the context that is missing from existing introductory textbooks, this work encourages students to think critically about received economic wisdom. This is the ideal complement to any introductory macroeconomics textbook and is ideally suited for undergraduate students who have completed a principles of economics course.

    The book is fully supported with additional online resources, which include lecture slides and an instructor manual.

    1 Rethinking macroeconomics: introduction to economics

    2 Keynesian theory and policy

    3 Keynesian theory after Keynes

    4 The Monetarist school of thought and monetary policy rules

    5 Austrian capital and business cycle theory

    6 Real business cycles and supply-side economics

    7 Modern Monetary Theory

    8 The Great Depression

    9 The war years and postwar recovery

    10 The 1950s and 1960s: a time of economic growth

    11 The years of stagflation

    12 Japan: economic miracle to lost decade

    13 The Great Moderation

    14 Financial crisis and deep recession

    15 Economics of the European Union

    16 COVID-19 and the economic collapse of 2020

    17 Conclusion: what approaches do people in authority use?


    John F. McDonald is Adjunct Professor of Economics at Temple University, Emeritus Professor of Economics at the University of Illinois at Chicago, and Gerald W. Fogelson Distinguished Chair in Real Estate Emeritus at Roosevelt University.