Rudiger Dornbusch,
Late of Massachusetts Institute of Technology Stanley Fischer,
Bank of Israel Richard Startz,
University of Washington
ISBN: 0073128112 Copyright year: 2008
Preface
The 10th edition of Macroeconomics is published 28 years after the first. We have been both amazed and flattered by the response our book has received over those years. Besides its use in the classrooms of many U.S. universities, it has been translated into
many languages and used in many countries, from Canada to Argentina to Australia; all over Europe; in India, Indonesia, and Japan; and from China and Albania to Russia. Even before the Czech Republic gained independence from communism, an underground translation was secretly used in macroeconomics seminars at Charles University in Prague. There is no greater pleasure for teachers and textbook authors than to see their efforts succeed so concretely around the world. We believe that the success of our textbook reflects the unique features it brings
to the universe of undergraduate macroeconomics. These features can be summarized
as follows:
“ Compassionate Difficulty ” Through the years we have held the conviction that
the best textbook is one written with an abiding respect for both student and instructor.
What does this mean exactly? In practice it means that we explore more stateof-
the-art research than is customary in undergraduate textbooks, allowing students
a point of departure for deeper exploration of various topics and teachers the flexibility
to emphasize topics in greater detail. At the same time, however, we have reduced
the book’s level of difficulty by providing straightforward explanations,
emphasizing concepts over technique, and fitting difficult material into a larger
framework so students can see its relevance. We also emphasize how empirical data
can explain and test macroeconomic theory by providing numerous illustrations using
real-world data.
“ Focus on ModelsThe best economists have a rich toolbox of simple models they can use to analyze various facets of the economy and know when to apply the right model to answer specific questions. We have consistently focused our textbook on the presentation of a series of simple models relevant to particular issues. We strive to help students understand the importance of a model-based approach to macroeconomic analysis as well as how the various models are connected. Our goal is to produce students who have the capacity to analyze current economic issues in the context of an economic frame of reference, namely, a set of macroeconomic models.
International Perspective It has always been important for students living in countries with highly open economies to understand the important links connecting foreign economies to their own. This is also becoming ever more true in the United States as international goods and financial markets become more intertwined. Recognizing this, we provide two detailed chapters discussing international linkages. The first, Chapter 12, provides a discussion of mainstream intermediate macroeconomic topics. The second, Chapter 20, gives advanced students the opportunity to explore modern theories of balance-of-payments crises, determinants of exchange rates, and the choice of exchange rate regimes. These chapters give instructors the flexibility to range from touching on a few international topics to a thorough discussion lasting several weeks.
Focus on Changing Times We have strived to present updated data throughout the book, demonstrating key trends and thorough discussions of how such trends might be explained by traditional macroeconomic models.
PLANS OF ATTACK
A major goal in writing this textbook is to provide one that is comprehensive yet flexible
enough to allow teachers to focus a class on their particular interests and time constraints.
Our personal preference is to begin at the beginning and work through the entire
book (which is, of course, why we organized the material in the way we did), but a
number of approaches can be taken to give a different emphasis or simply to reduce the
breadth of material covered. Examples of these approaches include
An Overview Course An overview course should contain what we feel is the core of the textbook: Chapters 1 and 2, which introduce the book and provide details on
national income accounting; Chapter 5, which gives an overview of aggregate supply and demand; Chapter 6, which presents the aggregate supply curve in more detail; Chapter 7, which discusses the headline issues of inflation and unemployment; Chapter 8, which gives a media-level view on stabilization policy and Chapters 9, 10, and 11, which introduce the goods market, asset market, and some basics of monetary and fiscal policy. Beyond these core chapters the course can be shortened substantially by omitting chapters that focus on the microeconomic detail beneath macroeconomic theory—Chapters 13–16, 18, and 20, for example, which supply such detail for consumption, investment, money markets, and advanced
topics respectively. And Chapters 17 and 19, which detail several current issues in
policymaking, can be omitted or done only in part. In the United States, Chapters 4, 12, and 20, which present many basic issues of international interdependence and growth policy, might also be omitted (although probably everyone should do Sections 12-1 and 12-2).
A Traditional Aggregate Demand-Oriented Course For a Keynesian, short-run
treatment of the course, the core chapters for the overview course should be emphasized
and Chapter 17, which discusses policy, added. Chapter 19, which discusses big macroeconomic events, can be moved ahead of Chapter 13. Chapters 3 and 4, on
growth and policies to promote growth, can be moved to the end of the course. And for advanced students, the sections on New Keynesian economics in Chapter 21 might be included.
A Classical “Supply-Side” Course For a classical treatment of the course the core chapters for the overview course can be shortened by de-emphasizing the IS - LM material in Chapters 9–11. And in the early chapters greater emphasis might be given to Chapters 3 and 4 on long-run growth. The microeconomics of macroeconomic theory in Chapters 13–15 might also be emphasized, as might the discussion of hyperinflation in Chapter 19. Advanced students may wish to explore the sections on the random walk in GDP and on real business cycles in Chapter 21.
A Business School Course In addition to the core chapters for the overview course,
a business school course should emphasize Chapters 16 and 18, which deal with the
Federal Reserve and financial markets. And Chapters 3 and 4 on growth can be eemphasized, while the advanced topics in Chapter 21 can be omitted. For students with an international perspective, Chapter 12 and parts of Chapter 20, especially the discussion of exchange rate determination, might be emphasized. Throughout the book, we have labeled some material that is technically difficult as “optional.” Many of the optional sections will be fun for students who enjoy a technical challenge, but the instructor should specify clearly which of these sections are required and which are truly optional.
To obtain an instructor login for this Online Learning Center, ask your local sales representative.
If you're an instructor thinking about adopting this textbook, request a free copy for review.
2008 McGraw-Hill Higher Education