The field of macroeconomics has always played host to contesting schools of thought, but the recent Global Financial Crisis has exacerbated those differences. In order to fully understand macroeconomics at the introductory level, students need to be aware of these controversies. Rethinking Macroeconomics introduces students to the different schools of thought, equipping them with the knowledge needed for a real understanding of today’s macro economy.
The text guides the reader through various approaches to the analysis of the macro economy of the U.S., before presenting the data for several critical economic episodes, in order to discover 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, and the creation of the money supply.
Offering the context that is missing from existing introductory macroeconomics texts, John F. McDonald encourages students to think critically about received economic wisdom. This text is the ideal complement to any introductory macroeconomics textbook and is best suited for undergraduate students who have had an introductory course in economics.
‘Rethinking macroeconomics is a book full of insights for anybody looking for an understandable introduction to macroeconomics with an eye towards history. McDonald outlines key ideas of different macroeconomic schools of thought, and puts them in context through a number of chapters focused on historical developments since World War I.’ — Rudi von Arnim, University of Utah, USA.
Chapter 1 Rethinking Macroeconomics
Chapter 2 Keynesian Theory and Policy
Chapter 3 Keynesian Theory after Keynes
Chapter 4 The Monetarist School of Thought and Monetary Policy Rules
Chapter 5 Real Business Cycles and Supply Side Economics
Chapter 6 Austrian Capital and Business Cycle Theory
Chapter 7 World War I and Aftermath
Chapter 8 Depression, War, and Aftermath
Chapter 9 The 1950s and 1960s: A Time of Economic Growth
Chapter 10 The Years of Stagflation
Chapter 11 The Great Moderation
Chapter 12 Financial Crisis and Deep Recession
Chapter 13 Conclusion: What Do People in Authority Use?