Macroeconomics: Policy and Practice

Over 40 in-chapter Applications show students how to apply theory to real-world examples. Examples of these applications include those on the Great Inflation from 1965 to 1982, the 2007–2009 financial crisis, the impact of oil prices on real wages and the stock market, why income inequality has been growing over time, and why some countries are rich and others poor. In addition, a special set of over 30 Policy and Practice cases explore specific examples of actual policies and how they were executed. These include such topics as how the Federal Reserve uses the Taylor rule, nonconventional monetary policy during the 2007–2009 financial crisis, the political business cycle and Richard Nixon, the Euro area’s stability and growth pact, and China’s one-child policy. These Applications and Policy and Practice cases provide critically important perspectives on current events, domestic and global issues, and historical episodes.