Macroeconomics

In the sixth edition, I build on the strengths of the first five editions, while producing a framework for students of macroeconomics that captures all of the latest developments in macroeconomic thinking, applied to recent economic events and developments in macroeconomic policy. Previous editions of this text used available macroeconomic models and new ideas to analyze the events of the global financial crisis of 2008-2009. Now, with the financial crisis receding in the rear-view mirror, there are new challenges that macroeconomists and policymakers need to address, and that students should come to terms with. What are the causes and consequences of the low rates of labor force participation and employment in the United States? What is unconven-tional monetary policy, and why are many central banks in the world engaging in such policies? What are the macroeconomic implications of default on debt by sovereign governments? Why are real rates of interest so low in world? Can inflation be too low, and what should governments do about too-low inflation? What is the role of fiscal policy in a liqudidity trap? What is Neo-Fisherism? What is secular stagnation? These questions, and more, are answered in this revised sixth edition.