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Macroeconomics: Imperfections, Institutions and Policies, by Wendy Carlin, David Soskice
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The distinctive feature of this book is that it provides a unified framework for the analysis of short- and medium-run macroeconomics. This gives students a model that they can use themselves to understand a wide range of real-world macroeconomic behavior and policy issues. The authors introduce a new graphical model (IS/PC/MR) based on the 3-equation New Keynesian model used in modern macroeconomics. The three equations are the IS curve, the Phillips curve, and an interest rate-based monetary policy rule. The use of a common framework throughout for closed and open economies helps students develop the economic intuition with which to address a diversity of macroeconomic problems.
Applied chapters show how models can be used to analyze performance in OECD economies over the past 25 years. The chapters on growth present in-depth coverage of the Solow-Swan, endogenous, and Schumpeterian models that allow students to understand how these approaches can be used to anser the big questions of growth: why some countries are rich and other are poor; why some catch up and others do not. Because the book is based on the mainstream 3-equation model used at the research frontier, the book gives students the economics background necessary for accessing advanced macroeconomics. It is also designed to appeal to graduate students, non-specialists in maacroeconomics, professional economists, and those from related disciplines who want a guide to the complexities of modern macroecnomics and to understand contemporary policy debates.
Online Resource Center: The companion website will provide exercises and checklist questions for students as well as password-protected solutions and diagrams from the text for instructors.
- Sales Rank: #459201 in Books
- Published on: 2006-02-02
- Original language: English
- Number of items: 1
- Dimensions: 7.20" h x 1.50" w x 9.60" l, 3.85 pounds
- Binding: Paperback
- 852 pages
Review
"When teaching intermediate macroeconomics in Harvard, I deeply felt that existing textbooks were all lacking: 1) proper microeconomic foundations linking important notions such as the Keynesian consumption function, the investment accelerator, the Phillips curve, the possibility of persistent (involuntary) unemployment, to precise sources of imperfections in the product, labor, or financial markets; 2) a suitable treatment of growth theory that can shed light on observed convergence and divergence patterns across countries and also on how growth policies should be designed in various countries at different stages of development. Being the first comprehensive attempt at filling these gaps, the Carlin-Soskice textbook should be used by any instructor who wants to bring her students to the frontier of modern macroeconomics while at the same time remaining fully accessible to a broad undergraduate audience." Philippe Aghion, Robert C. Waggoner Professor of Economics, Harvard University
"At last, an advanced undergraduate book which maps theory to facts. The theory, from the new Keynesian model of fluctuations to Schumpeterian models of growth, is sound. The applications, from European unemployment to the Japanese slump, highly revealing. You will enjoy every chapter, and become a good macroeconomist in the process. Olivier Blanchard, Class of 1941 Professor, Massachusetts Institute of Technology"
"The best way to learn economics is to have a textbook which develops a theoretical framework interactively with practical questions. Macroeconomics: Imperfections, Institutions and Policies does just this. The book is based on the mainstream monetary macro model which is now widely used by both academics and policy-makers. In a straightforward manner, it shows how this model can be used to address an enormous variety of practical questions without heavy use of mathematical technique." Stephen Nickell, School Professor of Economics, LSE; Member of the Monetary Policy Committee, Bank of England
"Imperfect competition, knowledge-based growth, inflation-targeting central banks and many other central features of modern economic systems have recently been integrated into the heart of macroeconomic theory. Carlin and Soskice do the profession a great service by writing a textbook that makes these developments accessible to undergraduates. The book presents macroeconomics at its best - as a useful framework for analyzing important questions." Peter Howitt, Lyn Crost Professor of Social Sciences, Brown University
"What makes Carlin and Soskice invaluable is both their clarity and their commitment to helping the reader understand the intuitions that lie behind the models. Furthermore, there is constantly an attempt to make the work relevant to practical questions of public policy. They tackle the impact of German Reunification, EMU, British economic performance, the 1990s US boom, and the long-standing Japanese recession. There is a major final chapter addressing the issues of unemployment, especially among the larger nations of Continental Europe. The authors approach these questions through the penetrating analytical lens of their framework, critically address the empirical evidence and come up with sometimes novel conclusions to the conventional wisdom." Professor John Van Reenen Director, Centre for Economic Performance, London School of Economics
" If, like me, you've been waiting a long time for the successor to Macroeconomics and the Wage Bargain, you will not be disappointed."
"Macroeconomics needs to be exciting and contemporary. Too often it becomes an area of difficulty and confusion for students. This book is to be welcomed for its very clear vision of what contemporary macroeconomics is about and its careful exposition leading the student to this." Dr Mary Gregory, Oxford University
About the Author
Wendy Carlin is Professor of Economics at University College London and is a Research Fellow of the Centre for Economic Policy Research. She is managing editor of the Economics of Transition and has published widely on macroeconomics, institutions, and transition. David Soskice is Research Professor at Duke University and at the Wissenschaftszentrum Berlin. He is Centennial Professor in the European Institute at the London School of Economics. He is Emeritus Fellow in Economics at University College, Oxford and has held visiting positions at the Australian National University and the universities of Berkeley, Johns Hopkins Bologna, Cornell, Pisa, Trento and Yale. He has published widely in economics, industrial relations, and political science.
Most helpful customer reviews
1 of 1 people found the following review helpful.
Very good!
By Karina Ferracioli
This book is great for those who are looking for to understand a little more of macroeconomics world. Very good
12 of 13 people found the following review helpful.
Better as a reference....
By Mike
I teach intermediate macro at a research university. However, I don't think I could use this book for teaching an undergraduate class. It's better targeted at a non-PhD. macroeconomics graduate class. I have two main criticisms and one main praise. I think the authors needed to pick whether they wanted to be technical, in the vein of Sargent, Romer, etc., or non-technical, like Blanchard or Mankiw. There is a lot of algebra and a lot of notation, but very little calculus. For as much algebra as the book contains, it would be nice to see more constrained optimization, since most of the models presented rearrange FOCs anyway. Also, there's very little exposition that's written at a non-graduate level. This book is pretty terse. It is not written to an audience that is still learning the basics of macroeconomics; it assumes quite a bit of knowledge.
Now the praise: it is an excellent, excellent reference. This book covers growth well. It does well with the IS-LM model. It has a nice chapter about asset markets. It's incredibly thorough with the open economy. I highly recommend this book to instructors who want to nail the intuition in their lectures but find the texts they choose to lack good mathematical descriptions.
0 of 0 people found the following review helpful.
wonderful job explaining macroeconomics theory without being disconnected from the real world
By CN
I am an undergrad Economics major at a large research university with interests in Macro (especially monetary policy), Financial, and Behavioral. I don't like reading my Economics textbooks, but I found this book very enjoyable. The authors are precise and on-point - I truly appreciate the fact that they don't take a page and a half to explain the most basic concepts. This textbook did a wonderful job explaining macroeconomics theory without being disconnected from the real world. I particularly enjoyed sections discussing "what economists said would happen" vs "what actually happens in real life."
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