ABSTRACT
This chapter examines the basics of current US macroeconomic policy. It provides several issues involving the US economy into the context of a global economy. The chapter concludes with recent research conducted by the National Planning Association on the growth of regional trading blocs in the international economy. Many segments of the US business community have lost faith in the General Agreement on Tariffs and Trade (GATT). In general, US business leaders seem to believe that the international economy is shifting in the direction of regional trading blocs. Many US employers have tied their compensation policies to firm-specific productivity and profitability and have based them less on norms, traditions, and industry patterns. US public policymakers and their economic advisers have generally been unable to create "mild" recessions in the post-World War II era. Recessions often have been deeper and longer than "intended" by political and economic decision makers.
