Macroeconomics

When it comes to explaining fundamental economic principles by drawing on current economic issues and events, there is no one more effective than Nobel laureate and New York Times columnist Paul Krugman and co-author, Robin Wells. In this best-selling introductory textbook, Krugman and Wells’ signature storytelling style and uncanny eye for revealing examples help readers understand how economic concepts play out in our world.

This new edition is revised and enhanced throughout, including a much stronger array of superior online tools that are part of a complete, integrated online learning system.

Paul Krugman, recipient of the 2008 Nobel Memorial Prize in Economics, is Professor of Economics at Princeton University, where he regularly teaches the principles course.  He received his BA from Yale and his PhD from MIT.  Prior to his current position, he taught at Yale, Stanford, and MIT.  He also spent a year on staff of the Council of Economics Advisors in 1982-1983.  His research is mainly in the area of international trade, where he is one of the founders of the “new trade theory,” which focuses on increasing returns and imperfect competition.  He also works in international finance, with a concentration in currency crises.  In 1991, Krugman received the American Economic Association’s John Bates Clark medal.  In addition to his teaching and academic research, Krugman writes extensively for nontechnical audiences.  Krugman is a regular op-ed columnist for the New York Times.  His latest trade book, The Conscience of a Liberal, is a best-selling study of the political economy of economic inequality and its relationship with political polarization from the Gilded Age to the present.  His earlier books, Peddling Prosperity and The Age of Diminished Expectations, have become modern classics.   Robin Wells was a lecturer and researcher in Economics at Princeton University, where she has taught undergraduate courses.  She received her BA from the University of Chicago and her PhD from the University of California, Berkeley; she then did her postdoctoral work at MIT.  She has taught at the University of Michigan, the University of Southhampton (United Kingdom), Stanford, and MIT.  Her teaching and research focus on the theory of organizations and incentives.

PART 1 What Is Economics?
Intro The Ordinary Business of Life
1 First Principles
2 Economic Models: Trade-offs and Trade
2 Appendix Graphs in Economics

PART 2 Supply and Demand
3 Supply and Demand
4 Price Controls and Quotas: Meddling with Markets
5 International Trade
5 Appendix Consumer and Producer Surplus

PART 3 Introduction to Macroeconomics
6 Macroeconomics: The Big Picture
7 GDP and CPI: Tracking the Macroeconomy
8 Unemployment and Inflation

PART 4 Long-Run Economic Growth
9 Long-Run Economic Growth
10 Savings, Investment Spending, and the Financial System
Appendix Toward A Fuller Understanding of Present Value

PART 5 Short-Run Economic Fluctuations
11 Income and Expenditure
Appendix Deriving the Multiplier Algebraically
12 Aggregate Demand and Aggregate Supply

PART 6 Stabilization Policy
13 Fiscal Policy
Appendix Taxes and the Multiplier
14 Money, Banking, and the Federal Reserve System
15 Monetary Policy
Appendix Reconciling the Two Models of the Interest Rate
16 Inflation, Disinflation, and Deflation
17 Crises and Consequences

PART 7 Events and Ideas
18 Events and Ideas

PART 8 The Open Economy
19 Open-Economy Macroeconomics

Macroeconomic Data Tables

Solutions to "Check Your Understanding" Questions Glossary Index