How should macroeconomics rethink financial crises?


The global financial crisis that began in 2008 kept scientists and economic politicians in suspense for an unusually long time. Even if the global economy appears to be gradually recovering, the experience of this crisis will have a lasting impact for a long time to come. They made macroeconomists rethink their models. The present 7th edition of the international classic integrates these experiences from the financial crisis in a well-founded way and prepares the research findings for the bachelor's degree in an understandable way.
The entire book has been extensively revised; all data with many examples from Germany and the euro area have been updated. Representations such as the IS-LM model or the traditional model of aggregated supply and demand were completely rewritten. Many focus boxes were newly introduced or expanded.

OLIVIER BLANCHARD is one of the world's most renowned macroeconomic experts. In addition to teaching at Harvard and the Massachusetts Institute of Technology (MIT), he has worked for several governments and international organizations. Since autumn 2008 he has been chief economist of the International Monetary Fund (IMF).
GERHARD ILLING holds the Chair for Macroeconomics at the Faculty of Economics at LMU Munich. He is a member of the Committee for Monetary Theory and Policy and the Committee for Macroeconomics in the Verein für Socialpolitik. Gerhard Illing adds European and German perspectives to the American version of the textbook.

• The goods market
• Equilibrium in goods and financial markets: the IS-LM model
• The extended IS-LM model
• Job market
• The Phillips curve
• IS-LM-PC model
• Growth - stylized facts
• Production, saving and capital building
• Growth and technical progress
• Technical progress - the short, medium, and long term
• Financial markets and expectations
• Expectation formation, consumption and investment
• Expectations, economic activity and politics
• Open goods and financial markets
• The goods market in an open economy
• Production, interest rate and exchange rate
• Different exchange rate regimes
• Should politicians be restricted in their freedom of choice?
• Fiscal Policy - a summary
• Monetary Policy - a summary
• Epilogue - the history of macroeconomics

The 7th, updated and expanded edition contains a 24-month access codeMyLab | Macroeconomics. The award-winning Pearson eLearning environment ideally complements the book, because the learner gets the important mathematical understanding of macroeconomic models and processes through his own interactive application. The more than 1,000 exercises contain step-by-step instructions that are valued by students and provide targeted help in the event of comprehension problems. So isMyLab | Macroeconomics the ideal preparation for exams. Lecturers also have the option of doing their homework individually from the large pool of assignments and creating lecturer-led courses.