Macroeconomics 7th Global Edition by Olivier Blanchard
Print ISBN: 9781292160504, 1292160500
eText ISBN: 9781292160566, 129216056X
By: Olivier Blanchard
Publisher: Pearson (Intl)
Print ISBN: 9781292160504, 1292160500
eText ISBN: 9781292160566, 129216056X
Edition: 7th
Copyright year: 2017
Blanchard presents a unified and global view of macroeconomics, enabling students to see the connections between the short-run, medium-run, and long-run. From the major economic crisis to the budget deficits of the United States, the detailed boxes in this text have been updated to convey the life of macroeconomics today and reinforce the lessons from the models, making them more concrete and easier to grasp.
Additional ISBNs
9780133076219, 9780133062106, 0133062104
Preface
New to this Edition
The crisis that started in 2008, and is still lingering, forced
macroeconomists to rethink much of macroeconomics.
They clearly had understated the role of the financial system.
They also had too optimistic a view of how the economy
returned to equilibrium. Eight years later, I believe the main
lessons have been absorbed, and this edition reflects the deep
rethinking that has taken place. Nearly all chapters have
been rewritten, and the main changes are as follows:
?? A modified Chapter 5, and a modified presentation of
the IS-LM. The traditional treatment of monetary policy
assumed that the central bank chose the money supply
and then let the interest rate adjust. In fact, modern central banks choose the interest rate and then let the
money supply adjust. In terms of the IS-LM model used
to describe the short run, the LM curve, instead of being
upward sloping, should be treated as flat. This makes for
a more realistic and a simpler model.
?? A new Chapter 6. The chapter focuses on the role of the
financial system in the economy. It extends the IS-LM
model to allow for two interest rates, the interest rate
set by monetary policy and the cost of borrowing for
people or firms, with the state of the financial system
determining the relation between the two.
?? A new Chapter 9. The traditional aggregate supplyaggregate
demand model was cumbersome and gave too
optimistic a view of the return of output to potential. The
model has been replaced by an IS-LM-PC model (where
PC stands for Phillips curve), which gives a simpler and
more accurate description of the role of monetary policy,
and of output and inflation dynamics.
?? The constraints on monetary policy, coming from the
zero lower bound, and the constraints on fiscal policy,
coming from the high levels of public debt, are recurring
themes throughout the book.
?? Many Focus boxes are new or extended. Among them:
?Unemployment and Happiness? in Chapter 2; ?The
Liquidity Trap in the United Kingdom? in Chapter 4;
Bank Runs in Chapter 6; ?Why is the Natural Rate of
Unemployment in Japan so Low?? in Chapter 8; ?Okun?s
Law? and ?Deflation in the Great Depression? in Chapter 9;
?The Construction of PPP Numbers? in Chapter 10; ?The
Role of Technology in the Decrease in Income Inequality
in Latin America in the 2000s? in Chapter 13; ?The
Yield Curves for AAA-rated Central Government Bonds?
in Chapter 14; ?The Disappearance of Current Account
Deficits in Euro Periphery Countries: Good News or Bad
News?? in Chapter 18; ?Euro Area Fiscal Rules: A Short
History? in Chapter 21; and ?Rules versus Discretion:
New Absolute Budgetary Rules in the EU? and ?How
Japan Could Stand Such a Huge Debt?? in Chapter 22.
?? Figures and tables have been updated using the latest
data available.
