Overview

Introduction to Macroeconomic Theory gives the fundamental knowledge which is necessary to understand the economic political debate about unemployment, inflation, budget deficits and growth. Pedagogical figures and diagrams support the text. There is only little use of mathematics. The main aim is to give the reader the needed tools to understand the political economic debate concerning: unemployment and public sector budget balance; inflation and the rate of interest; balance of payments and the exchange rate; and growth and environment. These relations are put into a macroeconomic framework which entails national as well as international perspectives. Although the world economy is becoming ever closer, the national states do still have political instruments to regulate the macroeconomic development. There are separate chapters on: fiscal policy and automatic budget stabilizers; monetary policy and international financial flows; exchange rate policy - fixed and floating; and structural policies, growth and unemployment. The book finishes with a chapter on the history of economic ideas.

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