New in the 2nd Edition
Updated, integrated treatment of the Great Recession
Two new chapters on microfoundations of consumption and investment
Consumption chapter based on the Euler equation
Investment chapter uses arbitrage equations to unify investment in physical capital, financial assets, and ideas.
Modern, up to date treatment of macroeconomics
One or two fully worked exercises at the end of each chapter
Thorough discussion of economic growth, including the Romer model
No LM curve: central banks set interest rates
AS/AD uses short-run output and inflation (not the price level), putting students closer to facts
What Instructors are saying:"A wonderful modern treatment of macroeconomics. Its discussion of growth is by far the best around, with its theory-based yet data-intensive approach. The short-run sections are also updated and refreshingly to the point, allowing great connections with U.S. business-cycle history. Since students also seem to like it better than the other books -- and I have tried the main competitors -- I am all set!"
-- Per Krusell, Princeton University
-- Steve Davis, University of Chicago Booth School of Business
"The treatment of growth is excellent. I also like the emphasis on interest-rate rules in the short-run material. A great strength of the presented short-run model is the explicit recognition of expectations formation in price setting (AS curve). This greatly assists talk about dynamics and implications of credibility of policy."
-- Bruce Preston, Columbia University
Additional ResourcesUseful Graphs for Teaching: Contains updates of many time-sensitive graphs from the Short-Run section of the book, as well as a number of other useful graphs that haven't yet made it into the text. (I'll update every 4 months or so).
Stanford MBA Macroeconomics (my personal lecture slides), Spring 2012: Syllabus | Lectures+Problems (zip file, 25MB)
Here is a link to the Country Snapshots data file.
W.W. Norton's Instructor Resources (including the official Lecture Powerpoints/PDFs --- ready in June 2011).
Table of ContentsPart One -- PreliminariesBack to my home page
Chapter 1: Introduction
Chapter 2: Measuring the Macroeconomy
Part Two -- The Long Run
Chapter 3: An Overview of Long Run Economic Growth
Chapter 4: A Model of Production
Chapter 5: The Solow Growth Model
Chapter 6: Growth and Ideas
Chapter 7: The Labor Market, Wages, and Unemployment
Chapter 8: Inflation
Part Three -- The Short Run
Chapter 9: An Overview of the Short Run
Chapter 10: The Great Recession: A First Look
Chapter 11: The IS Curve
Chapter 12: Monetary Policy and the Phillips Curve
Chapter 13: Stabilization Policy and the AS/AD Framework
Chapter 14: The Great Recession and the Short-Run Model
Part Four -- Applications and Microfoundations
Chapter 15: Consumption
Chapter 16: Investment
Chapter 17: The Government and the Macroeconomy
Chapter 18: International Trade
Chapter 19: Exchange Rates and International Finance
Chapter 20: Parting Thoughts