About the Book
Students often struggle to see how macroeconomic models compare to one another and fit into the big picture. Using a unified approach based on a single economics model, Abel, Bernanke, and Croushore provide a balanced, comprehensive treatment of classical and Keynesian economics, presenting macroeconomic theory in a way that prepares students to analyze real macroeconomic data.
The Sixth Edition Update consists of the Sixth Edition of Macroeconomics and the 2008–2009 Update Booklet, which is correlated to sixteen key chapter topics with resource material including speeches, reports, or testimony, most from the Federal Reserve Board. Questions at the end of each topic discussion demonstrate how macroeconomic theory has direct implications on today’s economic policies.
Additionally, the Sixth Edition Update provides the latest work in monetary policy and research, offers worked examples to students learning the IS-LM model, and features MyEconLab, the online homework and tutorial program with automatically graded problem sets.
View a demo of MyEconLab or visit MyEconLab for more information or to request an Instructor Access Code.
Table of Contents:
I. INTRODUCTION
1. Introduction to Macroeconomics
2. The Measurement and Structure of the National Economy
Update Booklet Topic: The Fed’s Preferred Inflation Measures
Resource: Frederic Mishkin, “Headline versus Core Inflation in the Conduct of Monetary Policy,” speech at the conference on Business Cycles, International Transmission, and Macroeconomic Policies, HEC Montreal, October 20, 2007
II. LONG-RUN ECONOMIC PERFORMANCE
3. Productivity, Output, and Employment
4. Consumption, Saving, and Investment
Update Booklet Topic: How Consumers Respond to Tax Rebates5. Saving and Investment in the Open Economy
Update Booklet Topic: Outsourcing and Globalization
Resource: Ben Bernanke, “Embracing the Challenge of Free Trade: Competing and Prospering in a Global Economy,” speech at the Montana Economic Development Summit, Butte, Montana, May 1, 20076. Long-Run Economic Growth
7. The Asset Market, Money, and Prices
Update Booklet Topic: The Term Structure Conundrum
Resource: Federal Reserve Chairman Alan Greenspan, in his testimony before Congress on February 16, 2005
Update Booklet Topic: How Consumers Make Noncash Payments
Resource: Federal Reserve Board of Governors, The 2007 Federal Reserve Payments Study and The 2004 Federal Reserve Payments Study
III. BUSINESS CYCLES AND MACROECONOMIC POLICY
8. Business Cycles
Update Booklet Topic: Hiring and Firing in Recessions
Resource: Shigeru Fujita, “What Do Worker Flows Tell Us About Cyclical Fluctuations in Unemployment?” Federal Reserve Bank of Philadelphia Business Review (Q2 2007), pp. 1–10
Update Booklet Topic: The Housing Bubble
Resource: Ben S. Bernanke, “Fostering Sustainable Homeownership,” speech at the National Community Reinvestment Coalition Annual Meeting, Washington, D.C., March 14, 2008
Update Booklet Topic: Trends in Economic Volatility
Resource: Charles Notzon and Dan Wilson, “Recent Trends in Economic Volatility: Conference Summary,” Federal Reserve Bank of San Francisco Economic Letter 2008-06, February 15, 20089. The IS-LM/AD-AS Model: A General Framework for Macroeconomic Analysis
10. Classical Business Cycle Analysis: Market-Clearing Macroeconomics
11. Keynesianism: The Macroeconomics of Wage and Price Rigidity
IV. MACROECONOMIC POLICY: ITS ENVIRONMENT AND INSTITUTIONS
12. Unemployment and Inflation
13. Exchange Rates, Business Cycles, and Macroeconomic Policy in the Open Economy
Update Booklet Topic: Recent Changes in Exchange Rates and Net Exports
Update Booklet Topic: The Yuan
14. Monetary Policy and the Federal Reserve System
Update Booklet Topic: The Fed’s Expanded Forecasts
Resource: Ben S. Bernanke, “Federal Reserve Communications,” speech at the Cato Institute Twenty-fifth Anniversary Monetary Policy Conference, Washington D.C., November 14, 2007
Update Booklet Topic: The Fed and Inflation Targeting
Resource: Ben S. Bernanke, “Federal Reserve Communications,” speech at the Cato Institute Twenty-fifth Anniversary Monetary Policy Conference, Washington D.C., November 14, 2007
Update Booklet Topic: Beware of Data Revisions
Resource: Dean Croushore, “Revisions to PCE Inflation Measures: Implications for Monetary Policy,” Federal Reserve Bank of Philadelphia working paper, forthcoming 200815. Government Spending and Its Financing
Update Booklet Topic: Marginal Tax Rates on Labor Supply
Update Booklet Topic: Comparing Tax Systems: the U.S. versus Other Countries
Update Booklet Topic: Trends in Tax Rates
Resource: Troy Davig and Alan Garner, “Middle-Income Tax Rates: Trends and Prospects,” Federal Reserve Bank of Kansas City Economic Review (Fourth Quarter 2006), pp. 5–30
About the Author :
Andrew B. Abel is the Ronald A. Rosenfeld Professor of Finance at the Wharton School and professor of economics at the University of Pennsylvania. He received his AB summa cum laude from Princeton University and holds a PhD from the Massachusetts Institute of Technology. Abel has published extensively on fiscal policy, capital formation, monetary policy, asset pricing, and social security—as well as serving on the editorial boards of numerous journals. He has been honored as the Alfred P. Sloan Fellow, a Fellow of the Econometric Society, and a recipient of the John Kenneth Galbraith Award for teaching excellence. He is a Research Associate of the National Bureau of Economic Research and a member of the Advisory Board of the Carnegie-Rochester Conference Series.
Ben S. Bernanke: Previously the Howard Harrison and Gabrielle Snyder Beck Professor of Economics and Public Affairs at Princeton University, Ben Bernanke received both the Allyn Young Prize for best Harvard undergraduate economics thesis and the John H. Williams prize for outstanding senior in the economics department. He went on to earn his PhD from the Massachusetts Institute of Technology, and he has been honored as a Research Associate of the National Bureau of Economic Research. Currently, he is Chairman and a member of the Board of Governors of the Federal Reserve System.
Dean Croushore is an associate professor of economics and Rigsby Fellow at the University of Richmond. Croushore served for fourteen years at the Federal Reserve Bank of Philadelphia, twelve of which as the head of the macroeconomics section. He has taught previously at Penn State University, Temple University, the Wharton School of the University of Pennsylvania, Johns Hopkins University, and Princeton University.
