by Olivier Blanchard, Alessia Amighini, Francesco Giavazzi
Pearson; 3rd edition
This ebook; Macroeconomics: A European Perspective 3rd edition (PDF) gives economics students a thorough understanding of macroeconomics by taking a unified view of the subject; allowing connections to be made between the long; medium and the short run. Re-written by best-selling authors almost from scratch in light of the experience of the Great Recession; this etextbook is essential reading for anyone studying macroeconomics in the aftermath of the financial crisis.
The ebook has been re-written almost from scratch after a thorough re-think of how macroeconomics should be taught after the financial crisis.
Among the new features:
- The textbook recognizes that modern central banks set interest rates; not the quantity of money: this gets rid of the LM curve greatly simplifying the discussion of financial markets
- The yield curve now incorporates a risk premium; whose fluctuations have been central to the crisis; especially since Quantitative Easing policies have shown that monetary policy can affect this premium
- It presents the Medium Run starting directly from the Phillips curve; thus avoiding the intermediate AS-AD step which was clunky; and; for good reasons; undergraduate students find it very difficult to understand. Output above potential; or unemployment below the natural rate put upward pressure on inflation. The nature of the pressure depends on the formation of expectations; an issue central to current developments
“This is a truly outstanding textbook that beautifully marries theory; empirics and policy. It is surely destined to become the gold standard against which all other textbooks must be measured” Charles Bean; Deputy Governor; Bank of England.