- Subject index
Macroeconomics Simplified explains the intuition behind Keynesian and neoclassical macroeconomics using graphs and simple algebra.
It provides students with a strong conceptual basis for understanding the tension between Keynesian and neoclassical systems that has once again came to the forefront since the 2007–08 financial crisis.
The book shows how theoretical perspectives affect macroeconomic policy choices and proposes a pragmatic approach to policy that is sensitive to prevailing economic conditions. Students of economics and business alike will enjoy its concise and engaging analysis and find the applications and references to the Indian economy helpful.
Chapter 1: Introduction
Macroeconomics is an exciting and fiercely contested branch of economics. It deals with economy-wide processes such as the business cycle, inflation and unemployment. These are the big questions in economics. Attempts by governments to address them through economic policy have major social, political and economic ramifications. Macroeconomic debates are thus heated and highly political as well as technical.
This introductory text reflects this contestation by presenting simple macroeconomic models in Keynesian and neoclassical versions. This serves the dual purpose of introducing the long-standing cleavage in macroeconomics as well as allowing for an informed discussion of the difference between market-clearing (neoclassical) and Keynesian models. The book shows how the various models can shed light on some important macroeconomic issues, but that their use needs to be ...