This new Australian edition of Macroeconomics is published 28 years after the first US edition and eleven years after the text was first adapted for Australia. Besides its use in the lecture rooms of many universities in the United States and Australia, the text has been translated into numerous languages and used in many countries: from Canada to Argentina; 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.

The enormous success of the both the international edition of Macroeconomics and of our first Australian adaptation of the text suggests that there is much going for their general approach and for the macroeconomic and methodological framework therein. With these thoughts in mind, we decided to maintain our focus on 'Australianising' the international edition of the textbook, while keeping most of the basic structure intact. We have added additional Australian examples and data, details of Australian institutional features and Australian policy issues to the text. We have also revised the chapters on the open economy, developed new chapters on the 'big issues' of inflation and unemployment, and added many details about the performance of economies in Asia and New Zealand where this was possible and appropriate.

In further adapting the text for Australia we believe that the ongoing success of the textbook reflects the unique features it brings to the universe of undergraduate macroeconomics. These features can be summarised as follows:

Reasonable difficulty

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 state-of-the-art research than is customary in undergraduate textbooks, allowing students a point of departure for deeper exploration of various topics and instructors the flexibility to emphasise topics in greater detail. At the same time, however, the book’s level of difficulty has been reduced by providing straightforward explanations, emphasising concepts over technique, and fitting difficult material into a larger framework so students can see its relevance.

Focus on models

The best economists have a rich 'toolbox' of simple models they can use to analyse various facets of the economy and know when to apply the right model to answer specific questions. This textbook focuses 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 analyse 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 open economies like Australia to understand the important links connecting foreign economies to their own. This is becoming increasingly true as goods and financial markets become more intertwined. Recognising this, we provide two detailed chapters discussing international linkages. The first, Chapter 10, provides a discussion of mainstream intermediate macroeconomic topics. The second, Chapter 11, gives a more advanced exploration of modern theories of the 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 data

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. We also emphasise how empirical data can test macroeconomic theory by providing numerous illustrations using real-world data.

We hope that the clear, comprehensive and up-to-date coverage achieved in our book makes it one that you will both enjoy studying from now and one that you will keep as an important reference book on all matters macroeconomic.

Philip Bodman
Mark Crosby