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Macroeconomics

The Development of Modern Methods for Policy Analysis William Scarth, Professor of Economics, McMaster University, Canada
This important textbook offers a comprehensive look into the two main traditions in contemporary macroeconomics – New Classical and Keynesian – and examines the work of economists who have drawn on principles from both traditions to form a new, integrated approach known as New Neoclassical Synthesis. Importantly, this provides the theoretical foundation for much of current mainstream economics and the work done by central banks around the world. With a dual focus on research methods and policy applications, this book bridges the gap between intermediate macroeconomic and advanced graduate-level texts, making it an ideal resource for senior undergraduate and Masters students in applied economics programs.
Extent: 336 pp
Hardback Price: $145.00 Web: $130.50
Publication Date: 2014
ISBN: 978 1 78195 387 7
Availability: In Stock
Paperback Price: $45.00 Web: $36.00
Publication Date: 2014
ISBN: 978 1 78195 388 4
Availability: In Stock
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  • Economics and Finance
  • History of Economic Thought
This important textbook offers a comprehensive look into the two main traditions in contemporary macroeconomics – New Classical and Keynesian – and examines the work of economists who have drawn on principles from both traditions to form a new, integrated approach known as New Neoclassical Synthesis. Importantly, this provides the theoretical foundation for much of current mainstream economics and the work done by central banks around the world. With a dual focus on research methods and policy applications, this book bridges the gap between intermediate macroeconomic and advanced graduate-level texts, making it an ideal resource for senior undergraduate and Masters students in applied economics programs.

Key topics include:

• a concise summary of intermediate macroeconomics, including the foundational ideas of both the New Classical and Keynesian traditions
• the Lucas critique of standard methods for evaluating policy design
• debt sustainability and austerity vs. stimulation debate
• optimal inflation rates
• tax reform and growth analysis
• alternative monetary policies for pursuing price stability
• theories of unemployment.

Students and instructors will find additional useful resources on the book’s companion website, including practice questions for each chapter.
‘This is an excellent book, actually the book, for the beginning graduate student who wants to keep up with the often confusing journal literature and the twists and turns of the intellectual debate. Now into a fourth edition, the “Scarth Express”, as we used to say circa 1975, is still going strong. This was a reference to the speed at which the material was delivered, in class, on a blackboard. No such problems for the reader of this volume.’
– John Smithin, York University, Canada

‘Most introductions to modern macroeconomics are quite technical, teaching advanced research methods. Others are more general, focusing instead on historical perspective and the major differences between several approaches, and so avoiding detailed derivations. Scarth’s book accomplishes both of these objectives, while maintaining the reader's interest with a strong emphasis on applied policy questions.’
– Richard Lipsey, Simon Fraser University, Canada
Contents: 1. Keynes and the Classics 2. The First Neoclassical Synthesis 3. Model-Consistent Expectations 4. The Micro-Foundations of Modern Macroeconomics 5. The Challenge of New Classical Macroeconomic 6. The New Neoclassical Synthesis 7. Stabilization Policy Controversies 8. Structural Unemployment 9. Unemployment and Low Incomes: Applying the Theory 10. Traditional Growth Theory 11. New Growth Theory 12. Growth Policy References Index