When studying macroeconomics it is vital for students to be able to relate the principles and theories they learn to what is actually happening in their local economy. Macroeconomics: Australasian edition, continues to provide an integrated view of macroeconomics and to make close contact with current macroeconomic events. A comprehensive and fully integrated text, this book retains the underlying balance and integrity of the US version whilst adding significant local and regional content. The book's inclusion of an analysis of monetary policy, conducted using the short-term interest rate as the instrument of policy, helps to build students' understanding and better reflects the realities of the Australian economy. The comprehensive macroeconomic ideas and theories of the text have been applied to Australasian issues to make it the only intermediate macroeconomics book that has a truly Australasian focus. The addition of a new chapter on the macroeconomics of financial crises brings it right up to date.

Table of Contents

1: A tour of the world -- 2: A tour of the book -- 3: The goods market -- 4: Financial markets -- 5: Goods and financial markets: the IS-LM Model -- 6: The labour market -- 7: Putting all markets together: the AS-AD Model -- 8: The natural rate of unemployment and the Phillips Curve -- 9: Inflation and economic activity -- 10: The facts of growth -- 11: Saving, capital accumulation and output -- 12: Technological progress and growth -- 13: Technological progress, wages and unemployment -- 14: Expectations: the basic tools -- 15: Financial markets and expectations -- 16: Expectations, consumption and investment -- 17: Expectations, output and policy -- 18: Openness in goods and financial markets -- 19: The goods market in an open economy -- 20: Output, the interest rate and the exchange rate -- 21: Exchange rate regimes -- 22: The macroeconomics of financial market crises -- 23: Depressions and slumps -- 24: High inflation -- 25: Should policy makers be restrained? -- 26: Monetary policy: a summing up -- 27: Fiscal policy: a summing up -- 28: Epilogue: the story of macroeconomics.

About the Author

Olivier Blanchard is one of Pearson's most notable economics authors. After graduating with his Ph.D. in economics from MIT, he taught at Harvard and MIT as a Professor of Economics. Blanchard has researched many macroeconomic issues, from the effects of fiscal policy, to the role of expectations, to price rigidities, and more recently, on labour market institutions. Professor Blanchard is a research associate of the National Bureau of Economic Research, a fellow and a council member of the Econometric Society, a member of the American Academy of Arts and Sciences, and a past vice president of the American Economic Association. Jeffrey Sheen is a Professor and the Head of Economics at Macquarie University in Sydney. He did his undergraduate work in Cape Town, and received a PhD in economics at the London School of Economics and Political Science in 1977. He has held teaching positions at the LSE, the University of Manchester, the University of Essex, the University of Sydney and Macquarie University. He has been a visiting economist at the Reserve Bank of Australia. He is the Secretary of the Economics Society of Australia, a council member of the Economic Society of Australia (NSW branch) and has been a council member of the Australasian Standing Committee of the Econometric Society. He is currently a co-editor of the Economic Record, Australia's leading professional economics journal.