This groundbreaking new core textbook encourages students to take a more critical approach to the prevalent assumptions around the subject of macroeconomics, by comparing and contrasting heterodox and orthodox approaches to theory and policy. The first such textbook to develop a heterodox model from the ground up, it is based on the principles of Modern Monetary Theory (MMT) as derived from the theories of Keynes, Kalecki, Veblen, Marx, and Minsky, amongst others. The internationally-respected author team offer appropriate fiscal and monetary policy recommendations, explaining how the poor economic performance of most of the wealthy capitalist countries over recent decades could have been avoided, and delivering a well-reasoned practical and philosophical argument for the heterodox MMT approach being advocated.
The book is suitable for both introductory and intermediate courses, offering a thorough overview of the basics, while covering everything needed for more advanced courses. Issues are explained conceptually, with the more technical, mathematical material in chapter appendices, offering greater flexibility of lecturer use.
|Publisher:||Macmillan Education UK|
|Edition description:||1st ed. 2019|
|Product dimensions:||7.50(w) x 10.10(h) x 1.30(d)|
About the Author
William Mitchell is a Professor of Economics at the University of Newcastle, Australia
L. Randall Wray is a Senior Scholar at the Levy Economics Institute of Bard College, USA
Martin Watts is a Professor of Economics at the University of Newcastle, Australia
Table of Contents
PART A: INTRODUCTION & MEASUREMENT.- 1 Introduction.- 2 How to Think and Do Macroeconomics.- 3 A Brief Overview of the Economic History and the Rise of Capitalism.- 4 The System of National Income and Product Accounts.- 5 Labour Market Concepts and Measurement.- 6 Sectoral Accounting and the Flow of Funds.- 7 Methods, Tools and Techniques.- 8 Framing and Language in Macroeconomics.- PART B: CURRENCY, MONEY & BANKING.- 9 Introduction to Sovereign Currency: The Government and its Money.- 10 Money and Banking.- PART C: NATIONAL INCOME, OUTPUT AND EMPLOYMENT DETERMINATION.- 11 The Classical System.- 12 Mr Keynes and the ‘Classics’.- 13 The Theory of Effective Demand.- 14 The Macroeconomic Demand for Labour.- 15 The Aggregate Expenditure Model.- 16 Aggregate Supply.- PART D UNEMPLOYMENT AND INFLATION: THEORY AND POLICY.- 17 Unemployment and Inflation.- 18 The Phillips Curve and Beyond.- 19 Full Employment Policy.- PART E ECONOMIC POLICY IN AN OPEN ECONOMY.- 20 Introduction to Monetary and Fiscal Policy Operations.- 21 Fiscal Policy in Sovereign Nations.- 22 Fiscal Space and Fiscal Sustainability.- 23 Monetary Policy in Sovereign Nations.- 24 Policy in an Open Economy: Exchange Rates, Balance of Payments and Competitiveness.- PART F ECONOMIC INSTABILITY.- 25 The Role of Investment in Profit Generation.- 26 Stabilising the Unstable Economy.- PART G HISTORY OF MACROECONOMIC THOUGHT.- 27 Overview of the History of Economic Thought.- 28 The IS-LM Framework.- 29 Modern Schools of Economic Thought.- 30 The New Monetary Consensus in Macroeconomics.- PART H CONTEMPORARY DEBATES.- 31 Recent Policy Debates.- 32 Macroeconomics in the Light of the Global Financial Crisis.- 33 Macroeconomics for the Future.
What People are Saying About This
Even some mainstream economists now acknowledge that the macroeconomics of the past thirty years represents a big step back. But they do not recognize that this is because it lacks a pluralist perspective, and in the meantime they have ignored the revolutionary potential of heterodox economics for reconstructing macroeconomics. This new book points out the right direction for the coming macroeconomics revolution. –Jia Genliang, Renmin University of China.
Finally, a macroeconomics text that takes a modern-monetary approach to the macroeconomy. Finally, an alternative to the mainstream vision of the macro economy and what it says and, more importantly, fails to say, about the real world. The presentation of Keynes closely approximates his vision, a much-needed change from texts that present a “bastardized” view of Keynes’ theory. The book is highly readable, the assumptions underlying the different models are presented clearly, the logic easy to follow, and the historical context serves to add relevance. –John P. Watkins, Westminster College, Utah, USA
A complete, up-to-date and excellent account of macroeconomic theory. An excellent critique of the mainstream economic paradigm, it calls for more realistic approaches to human behaviour, and for heterodox ideas in economics. It presents macroeconomic methodology in the light of the 2007-08 crisis, and outlines how economics should proceed in the post-crash world. One of the most interesting and remarkable macroeconomics textbooks of the past few years. –Omar Feraboli, University of Dundee, UK
Finally, a macro textbook that rejects neoclassical microfoundations as a basis for understanding how capitalism works. The authors replace maximizing individuals with social classes where capitalist firms exercising differential power largely determine economic outcomes. –Robert Chernomas, University of Manitoba, Canada
The most progressive macroeconomics textbook on the market. Organized around a balance sheet view, the authors carefully examine the most important issues of our time: Why government as the sovereign issuer of currency is not financially constrained, how banks create deposits by making loans and how the central bank influences the economy by shifting interest rates. The authors are outstanding scholars of macroeconomics, and this textbook should enlighten the next generation of students. I recommend it wholeheartedly. –Dirk Ehnts, Europa-Universität Flensburg, Germany
A uniquely well-structured, clear discussion of macroeconomics for the 21st century, contrasting a useful and realistic analysis of a modern monetary production economy with the flawed, unrealistic and outdated narrowly neoclassical approach which has failed so comprehensively in recent years. Quite simply the best economics textbook I have ever read, and one which should become a standard text in many universities and colleges in the years to come. –Steven Hail, University of Adelaide, Australia
Supremely accessible…Unlike most other textbooks, it explains schools of thought, relates them to the history of economic ideas and provides historical and institutional detail. Students are invited to reflect on why economists disagree, what macroeconomics means, and the role of language and framing. One can only wish that all textbooks nurtured sensitivity to these topics in future economists. All in all, an exceptionally clear text for students new to macroeconomics and a good grounding in the current policy debates shown in the final part of the book.. It marries pluralism of ideas with a clear exposition of Modern Monetary Theory, all with institutional realism and analytical rigor - a major feat. Highly recommended! –Dirk J. Bezemer, University of Groningen, Netherlands
This is a long awaited first-year university textbook where heterodox and mainstream approaches run side by side within a critical framework which avoids the pedagogical pitfall of forcing students to learn economics through mainstream lenses. Students and experienced economists alike can learn from this wonderful book. –Alberto Paloni, University of Glasgow, UK
Macroeconomics provides an exceptionally comprehensive and balanced guide to macroeconomics from both orthodox and heterodox views (post-Keynesian, institutionalists, and Marxian). It covers important but rarely discussed topics at the introductory level such as measurement of inequality, endogenous money and Modern Money Theory (MMT), quantitative easing, negative interest rates policies, theory of effective demand, full employment policy, economic instability, and environmental sustainability. This is a truly important and innovative introduction to macroeconomics, not only for beginning students, but also even for professional economists who would like an introduction to some of these important subjects that orthodox economics neglect. Kudos to the authors! –Y.K. Kim, University of Massachusetts Boston, USA