ABSTRACT

Macroeconomic Principles and Problems: A Pluralist Introduction offers a comprehensive overview of the major topics in modern macroeconomics, from mainstream and heterodox perspectives.

This textbook examines the key macroeconomic problems and policy debates facing contemporary society, including economic crises, sustainability, fiscal and monetary policy, government debt, state-led vs. market-led approaches for growth, and unregulated trade vs. protectionism.

Written in an engaging style and focused on real-world examples, this textbook brings macroeconomics to life. Multiple examples of how each economic model works, coupled with critical analysis of the assumptions behind them, enable students to develop a sophisticated understanding of the material. Digital supplements are also available for students and instructors.

Macroeconomic Principles and Problems offers the most contemporary and complete package for any pluralist macroeconomics principles class.

part I|40 pages

Economics

chapter 1|18 pages

What is economics?

The answer depends on who you ask

chapter 2|20 pages

Scarcity, choice, and opportunity cost

The mainstream approach, the PPC model, the limits of this approach, and the importance of institutions

part II|134 pages

The evolution of economic ideas and systems

chapter 3|25 pages

The evolution of economic systems and the ideas of Adam Smith

From communal societies to early capitalism

chapter 4|29 pages

Marx, Veblen, and the dark ages of capitalism

Historical materialism, the exploitation of labor, and monopoly capitalism

chapter 5|25 pages

Keynes and mixed market capitalism

How to save capitalism from itself

chapter 6|22 pages

Modern economic systems

Market-dominated, social market, and state-dominated economies

chapter 7|31 pages

Markets and how they work

The institutional foundations of markets and the supply and demand model

part III|84 pages

Macroeconomic issues and problems

chapter 8|27 pages

Modern macroeconomics

The evolution of macroeconomic theory and the macroeconomy in the modern era

chapter 9|25 pages

Macroeconomic well-being

Measuring and describing the macroeconomy

chapter 10|30 pages

Unemployment and price instability

The major macroeconomic market failures

part IV|52 pages

Macroeconomic models

chapter 11|26 pages

Aggregate demand and aggregate supply

A mainstream economics model of the macroeconomy

chapter 12|24 pages

The Keynesian aggregate expenditure–income model

The foundation of modern macroeconomics

part V|108 pages

Stabilization policy

chapter 13|35 pages

Fiscal policy, debt, and deficits

Fiscal activism vs. austerity and the macroeconomic role of government

chapter 14|27 pages

Money, banking, and the financial sector

How money markets make the world go around

chapter 15|19 pages

Monetary policy

The role of central banks in stabilizing economies and regulating financial markets

chapter 16|25 pages

Crises, financial and otherwise

On the causes and consequences of economic crises and how they can be averted

part VI|106 pages

Growth and global interconnectedness

chapter 17|26 pages

The sources of economic growth

chapter 18|28 pages

International trade and integration

How unregulated trade, protectionism, and trade agreements affect economies

chapter 19|26 pages

International finance and open economy macroeconomics

Exchange rates, financial flows, and the balance of payments

chapter 20|24 pages

Economic development

The barriers facing less developed countries and how they can be overcome 1