A Practical Guide to Macroeconomics

The gulf between macroeconomic theory and macroeconomic practice has never been greater. This book bridges that gap.

Jeremy B. Rudd (Author)

9781009465793, Cambridge University Press

Paperback / softback, published 4 April 2024

322 pages
22.9 x 15.2 x 1.8 cm, 0.48 kg

'Jeremy Rudd's insightful book … is an important resource for economists who study and provide monetary and fiscal policy analysis at the macroeconomic level. This book has much advanced technical material, but it is written in a reasonably accessible manner for economic professionals … I enjoyed reading this book, and I will reach for it often as an accessible reference regarding how a wide variety of macroeconomic theories and literatures are employed in monetary policy settings.' Charles L. Evans, Business Economics

There is an uncomfortably large gulf between academic research and what policy economists use to understand the economy. A Practical Guide to Macroeconomics shows how economists at policy institutions approach important real-world questions and explains why existing academic work – theoretical and empirical – has little to offer them. It argues that this disconnect between theory and practice is problematic for policymaking and the economics profession and looks at what's needed to make academic research more relevant for policy. The book also covers topics related to economic measurement and provides a compact overview of US macroeconomic statistics that will help researchers use these data in a better-informed way.

1. Introduction: is macroeconomics useful?
2. Trends and cycles, shocks and stability
3. Determinants of aggregate spending and saving
4. Production functions and growth accounting
5. The macroeconomics of 'the' labor market
6. Understanding US inflation dynamics
7. What does monetary policy do?
8. What does fiscal policy do?
9. Conclusion: is (macro)economics useful?
Appendix: miscellaneous notes on economic measurement.

Subject Areas: Macroeconomics [KCB]