Macroeconomic Policy: Demystifying Monetary and Fiscal Policy [Hardcover]

Farrokh Langdana (Author)

Book Description

Publication Date: February 27, 2009

This is an applications-oriented text that demystifies the linkages between monetary and fiscal policies and key macroeconomic variables such as income, unemployment, inflation and interest rates. Specially written "newspaper" articles simulate current macroeconomic news on asset-price bubbles, exchange rates, hyperinflation and more. Exercises and diagrams, and a global perspective – incorporating both developed and emerging economies - make this a broadly useful, real-world oriented text on a complex and shifting subject.

Editorial Reviews

Review

From the reviews:

"The notion of allowing the reader the freedom of choice between the Keynesian and Supply-Sider models for developed economies is fresh and radically different from most conventional macroeconomic texts. In addition, it is an honest approach...given that policymakers...still make policy based on assumptions behind each paradigm."
(Dr. W. Michael Cox, Senior Vice President and Chief Economist, Federal Reserve Bank of Dallas and co-author of Myths of Rich and Poor)

"Macroeconomic Policy is a lively and informative introduction to the diverse doctrines of macroeconomic theory."
(Professor Robert E. Lucas, Jr., Recipient of the 1995 Nobel Prize in Economics)

--This text refers to an alternate Hardcover edition.

From the Back Cover

Macroeconomic Policy 2^nd Edition is an applications-oriented text designed for individuals who desire a hands-on approach to analyzing the effects of fiscal and monetary policies. MBA and Executive MBA students who appreciate the importance of monetary and fiscal analysis will find this text to be right on target. Financial analysts and individual investors who need to strip away economic myths and jargon and systematically examine and understand the effects of macro policies on variables such as inflation, output, employment and interest rates, will also find the book extremely useful.

A unique feature of this book is the extensive use of specially written "newspaper" articles designed to simulate current macroeconomic news. Each chapter contains exercises that enable the reader to relate specific underlined passages in these articles to the theory presented in preceding chapters. This distinctive approach ensures real-world applicability, and supporting diagrams further enable the reader to relate current economic news to the theoretical material discussed.

This edition incorporates a greater open-economy approach to macroeconomic analysis and employs a much more global focus:

• Existing cases and articles have been rewritten, and new ones added to reflect the current state of the major economies and their macropolicies.
• Housing and asset-price bubbles in the US, India, China, the UK, Iceland, and many countries in the Eurozone in the "post-subprime world" are analyzed.
• The rollercoaster ride of the dollar that began in 2007 is examined as well as the effect on currencies pegged to the US dollar.
• Global events including the hyperinflation in Zimbabwe of the late 2000's, causes and consequences of hot capital flows in Iceland, the trade-deficit-capital-inflow relationship with China, and the subprime saga are included as new articles.
• The "technology-driven new economy" and supply-side policy analyses for the US and the Eurozone are emphasized.

"Macroeconomic Policy is a lively and informative introduction to the diverse doctrines of macroeconomic theory."

Prof. Robert E. Lucas, Jr., Recipient of the 1995 Nobel Prize in Economics

 "The notion of allowing the reader the freedom of choice between the Keynesian and Supply-Sider models for developed economies is fresh and radically different from most conventional macroeconomic texts. In addition, it is an honest approach...given that policymakers...still make policy based on assumptions behind each paradigm."

Dr. W. Michael Cox, Senior Vice President and Chief Economist, Federal Reserve Bank of Dallas, and co-author of Myths of Rich and Poor

Product Details

• Hardcover: 20 pages
• Publisher: Springer; 2nd ed. edition (February 27, 2009)
• Language: English
• ISBN-10: 0387776656
• ISBN-13: 978-0387776651
• Product Dimensions: 9.3 x 6.1 x 0.8 inches
• Shipping Weight: 1.2 pounds (View shipping rates and policies)
• Average Customer Review: 4.6 out of 5 stars  See all reviews (19 customer reviews)
• Amazon Best Sellers Rank: #943,762 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

8 of 8 people found the following review helpful:

5.0 out of 5 stars Excellent Preparation for CFA Level 1, October 22, 2003

By 

Percy Naranjo (Miami, United States.) - See all my reviews

This review is from: Macroeconomic Policy: Demystifying Monetary and Fiscal Policy (Hardcover)

I am an employee at Merrill Lynch (I have my series 7,63,65,24,4), and currently studying for the CFA Level 1 Exam, however, my background is in Biochemistry and Biology so it is pretty obvious that I was behind my peers relative to our formal academic background. So, I felt that I needed a book that that could clearly communicate the macroeconomic policies that govern this country. However, because the CFA level 1 is a difficult exam, I could not afford to have the author dilute the information, or overly simplify the information. Fortunately, the literature provided in this book not only conveyed the information better, and clearer than, the actual CFA preparatory classes that I had been taken, but it was such a fun book to read. The beauty of this book is that it provides actual contemporay, and historic global examples to supplement the literature. Prior to reading this book, I had read other books on macroeconomic policy that were so dry that I could not even finish the chapters (and I had read some pretty dry books during my days as an undergrade pursuing my double major in Biotechnology and Biology), but this book was the type of book that I did not want to put down from the moment I started reading it. Furthermore, this book also assisted me in getting a better understanding of the markets (equities and real estate) for future investments as well. After reading this book, I am such a sharper investor, I can now dissect the nonsense from the valid information that is being promoted on TV and in magazines. I highly recommend this book for everyone who is interested in getting a deeper understanding of how our government works, and how our economy works relative to the rest of the world.

8 of 9 people found the following review helpful:

5.0 out of 5 stars Macroeconomic Theory for Everyone, October 29, 2002

By 

"delacruz_paul" (Rutgers EMBA Program, Class of 2004) - See all my reviews

This review is from: Macroeconomic Policy: Demystifying Monetary and Fiscal Policy (Hardcover)

Without taking any sides in the often heated battle over competing macroeconomic models, Prof. Langdana presents a well-written, easy to understand dissertation on the driving forces behind macroeconomic policy. Appropriate for readers of all types, from economics students and practitioners to business people who have a vested interest in the performance of world economies. There is useful discussion and analysis in every chapter.

All bases are covered here, from Classical to Keynesian to Supply-side. Real life macroeconomic events such as the Great Depression are explored and analyzed through the lenses of the various models. The use of plain English and clear diagrams makes sophisticated macropolicy theories easy to digest.

Prof. Langdana's imaginative prose brings the theoretical alive, and his clever use of simulated "news articles" to enhance the text and provide real world relevance to the discussions is a superb educational technique. To sum this book up in a single word - HUGE!

4 of 4 people found the following review helpful:

5.0 out of 5 stars Outstanding!, October 8, 2003

By A Customer

This review is from: Macroeconomic Policy: Demystifying Monetary and Fiscal Policy (Hardcover)

This book truly does demystify macroeconomics. Professor Langdana makes it accessible and easy to see the results of monetary and fiscal policy. I've never studied economics and I know I have a much better understanding of the subject thanks to him and his book!