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Introductory Macroeconomics 1E


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Table of Contents

About the authors ix Applications at a glance xii Preface xiv Accompanying resources xv How to use this book xvi Acknowledgements xix Chapter 1 Introduction 1 Chapter 2 Output, unemployment and inflation 33 Chapter 3 Full employment and productivity growth 73 Chapter 4 Deficits, debt and the open economy 109 Chapter 5 Introduction to business cycles 143 Chapter 6 Aggregate demand and inflation 181 Chapter 7 The Reserve Bank and interest rates 211 Chapter 8 Stabilisation policies 227 Chapter 9 Inflation and unemployment 257 Chapter 10 International economics: an introduction 279 Chapter 11 The international financial system 303 Chapter 12 Economic development 325 Chapter 13 Macroeconomics and you 347 Glossary 375 Index 383

About the Author

Joseph E. Stiglitz is university professor at Columbia and Co-Chair of Columbia s Committee on Global Thought. He is also the co-founder and co-president of the Initiative for Policy Dialogue at Columbia. Before joining the Columbia faculty, he held appointments at Yale, Oxford, Princeton and Stanford. Internationally recognised as one of the leading economists of his generation, Professor Stiglitz has made important contributions to virtually all of the major subfields of economics, in particular the economics of information, one of the key topics highlighted in this text. Recognised around the world as a leading economic educator, he has written textbooks that have been translated into more than a dozen languages. In 2001, Stiglitz was awarded the Nobel Prize in economics for his analyses of markets with asymmetric information, and he was a lead author of the 1995 Report of the Intergovernmental Panel on Climate Change, which shared the 2007 Nobel Peace Prize. Earlier in his career, he received the American Economic Association s John Bates Clark Medal, which is given every two years to the most outstanding economist under the age of forty. In 2011, Time magazine named Stiglitz one of the 100 most infl uential people in the world. Stiglitz was Chair of the Council of Economic Advisers during the Clinton administration, and later served as Chief Economist and Senior Vice President of the World Bank. In 2008, he chaired the Commission on the Measurement of Economic Performance and Social Progress, and in 2009 he was appointed by the United Nations General Assembly as chair of the Commission of Experts on Reform of the International Financial and Monetary System. In 2010, Stiglitz was invited to speak by the Economics Society of Australia, and gave a number of media interviews on his tour. In particular, he made comment on the state of the local economy in the aftermath of the global financial crisis, the role of natural resources, and the country s response to climate change. Carl E. Walsh is distinguished professor of economics and Chair of the Department of Economics at the University of California, Santa Cruz, where he teaches principles of economics. He previously held faculty appointments at Princeton and the University of Auckland, New Zealand, and has been a visiting professor at Stanford. Walsh s research deals primarily with central banking and issues associated with the theory of monetary policy. His recent work has focused on the role of transparency and monetary policy announcements, the role of the cost channel in the transmission of monetary policy, and the integration of modern theories of unemployment into frameworks for monetary policy analysis. Before joining the Santa Cruz faculty, Walsh was senior economist at the Federal Reserve Bank of San Francisco, where he continues to serve as a visiting scholar. He has also been a visiting scholar at the Federal Reserve Banks of Kansas City, Philadelphia, and at the Board of Governors. He has taught courses in monetary economics to the research department and staff economists at the central banks of Hong Kong, Norway, Portugal, Spain and the United Kingdom, and at the International Monetary Fund. He is currently co-editor of the International Journal of Central Banking , and an associate editor of the Journal of Money, Credit, and Banking and the Journal of Economics and Business . He is also on the editorial boards of the Journal of Macroeconomics and New Zealand Economic Papers. Massimiliano Tani is a professor of fi nance and economics in the School of Business at the University of New South Wales (Canberra). He holds a PhD in economics from the Australian National University (2003), a graduate diploma in university learning and teaching (UNSW, 2004), a MSc(Econ) from the London School of Economics (1992) and a Laurea in economics from Bocconi University in Milan, Italy (1989). Tani has taught macroeconomics for a decade, earning faculty and university awards for excellence in teaching thanks to his ability to communicate economic concepts approachably. He regularly comments on economic news in the media. His research work and interest focus on knowledge diffusion and skilled migration. His published research also addresses students educational choices and labour market outcomes, as well as motivation, and attitudes towards depression. Before moving to Australia in 1999, Tani lived in London, working in investment banking. Ross Guest is a professor of economics and Head of the Department of Accounting, Finance and Economics at Griffi th University. He is an adjunct professor with the Australia and New Zealand School of Government (ANZSOG), a senior teaching fellow with the Offi ce of Learning and Teaching, and co-editor of the International Review of Economics Education . He has a PhD in economics from the University of Melbourne. Guest was fi rst employed as a lecturer at Monash University in 1991, and left in 1998 to join Griffi th University, where he was appointed to professor in 2003. He won a national Citation for Outstanding Contributions to Student Learning in 2006 (formerly administered by the Carrick Institute). He has published over 80 academic articles, and has received four grants as chief investigator from the Australian Research Council. Guest was an invited participant at the Prime Minister s 2020 Summit in 2008 on the basis of his published research on population economics.

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