About this Book

"The macroeconomic events of the last several years are truly breathtaking -- a once-in-a-lifetime (we hope) occurrence. While the basics of how economists understand the macroeconomy remain solid, the global financial crisis and the Great Recession take us into waters that, if not uncharted, at least haven't been visited in recent decades, The remarkable collapse in housing prices, the large rise in the financial risk premium, the massive expansion of the Federal Reserve's balance sheet, and the global nature of the financial crisis are among the novel changes in the macroeconomy. This new edition continues the tradition established in previous versions of the book of providing up-to-date, modern analysis of both current events and classic issues in macroeconomics. For example, the latest research on the Great Recession, China's impact on US. jobs and wage inequality, new measures of standards of living, and the Euro-area financial crisis are all incorporated. In addition, I'm especially excited to introduce a new chapter on DSGE (dynamic, stochastic, general equilibrium) models -- the new Chapter 15. This chapter explains state-of-the art business cycle modeling at a level appropriate for all intermediate macro students, complementing the more traditional AS/AD-style analysis of earlier chapters. This third edition also incorporates many new case studies and exercises, extensive updates to tables and figures to reflect the most current data, and improvements on nearly every page in the text."--