Macroeconomics

Macroeconomics: Understanding the Global Economy, 3^rd Edition is to help students – and indeed anyone – understand contemporary and past economic events that shape the world we live in, and at a sophisticated level. But it does so without focusing on mathematical techniques and models for their own sake.

Theory is taken seriously – so much so that the authors go to pains to understand the key aspects of theories in a way that will not put people off before they see how theories are useful to analyse issues. The authors believe that theories are essential to better understand the world, thus the book includes a wealth of historic and current episodes and data to both see how theories can help interpret the world and also to judge their validity.

Economies today are very inter-connected; what happens in China matters pretty much everywhere; and what happens in one (even small) country in the euro zone has implications for the whole euro area and beyond, consequently Macroeconomics, 3^rd Edition adopts a very international focus.

Preface

Part One. Introduction

Chapter 1. What Is Macroeconomics?

Chapter 2. The Language of Macroeconomics: The National Income Accounts

Part Two. Economic Growth and The Supply Side

Chapter 3. The Wealth of Nations: The Supply Side

Chapter 4. Capital Accumulation and Economic Growth

Chapter 5. Total Factor Productivity, Human Capital and Technology

Chapter 6. Endogenous Growth and Convergence

Chapter 7. Unemployment and the Labour Market

Chapter 8. International Trade

Chapter 9. Globalization

Part Three. Business Cycles and Economic Policy

Chapter 10. Consumption and Investment

Chapter 11. Business Cycles

Chapter 12. Money and Prices

Chapter 13. Monetary Policy

Chapter 14. Fiscal Policy and the Role of Government

Chapter 15. Stabilization Policy

Part Four. Asset Markets and the Financial Sector

Chapter 16. Financial Markets: Equities and Bonds

Chapter 17. The Banking Sector

Chapter 18. Sovereign Debt and Default

Part Five. Exchange Rates and Global Capital Markets

Chapter 19. Exchange Rate Determination I: The Real Exchange Rate

Chapter 20. Exchange Rate Determination II: Nominal Exchange Rates and Asset Markets

Chapter 21. Currency Crises and Exchange Rate Systems

Glossary

Notes

Index

David Miles is a member of the Bank of England’s interest-rate setting Monetary Policy Committee. He is Visiting Professor at Imperial College, London and former Chief UK Economist of Morgan Stanley. He was Professor of Finance at Imperial College, London.

Andrew Scott is Deputy Dean and Professor of Economics at London Business School, a Fellow of the Centre for Economic Policy Research and Non-Executive Director of the UK’s Financial Services Authority. Previously he was a Fellow at All Souls, Oxford, and held lecturing positions at Harvard University and London School of Economics.

Francis Breedon is Professor of Economics and Finance at Queen Mary, University of London. Previously he was at Imperial College Business School. He has worked as Global Head of Foreign Exchange Research at Lehman Brothers and as a senior economist at the Bank of England.

A thoroughly revised and updated third edition of a very successful macroeconomics textbook, Macroeconomics: Understanding the Global Economy, Third Edition is a core text for introductory courses on macroeconomics. Using recent events to illustrate and motivate models and concepts, the authors draw out the lessons of the financial crisis and give a global outlook using historical and contemporary data from around the world. Technical material is presented clearly and accessibly, allowing students to develop a solid, practical understanding of the global economy and how economists think. With two new chapters on banking and sovereign debt and default, this edition is revised to also provide significantly increased coverage of the macroeconomic role of financial markets and financial intermediaries and greater coverage of the BRICs and other developments such as environmental economics and Sovereign Wealth Funds.

A comprehensive package of supplementary materials is available on the accompanying website at www.wileyeurope.com/college/miles, including PowerPoint slides (updated at regular intervals due to the fast-changing nature of today’s economy), Videos, Instructor’s Manual, an extensive Testbank, and solutions to questions and quizzes.

This third edition of a highly successful textbook integrates the lessons from the current financial crisis fully into its analytical framework. It is a model of clarity, and is interesting and fun to read.
Mervyn King, Governor of the Bank of England

Reading this textbook reminded me why I love macroeconomics. It is very readable, packed full of topical examples and the questions at the end of each chapter are a really helpful way of ensuring your mind takes in the material. I found myself wanting to refer to some of the material in my own writing. Congratulations to the three authors.
Jim O’Neill, Goldman Sachs and Inventor of the “BRICs”

The financial crisis has posed many difficult questions to policymakers and economists but it has at least provided a dramatic set of interesting questions for students who want to learn about macroeconomics and the world economy. These questions are at the heart of this textbook which provides a clear understanding of the theories, structures and institutions that make up the world economy. If we are to get out of this crisis or avoid the next one we need textbooks like this that grapple with real world issues.
Nouriel Roubini, Stern School of Business, New York University and Roubini Global Economics