“Even some mainstream economists now acknowledge that the macroeconomics of the past thirty years represents a big step back. But they do not recognize that this is because it lacks a pluralist perspective, and in the meantime they have ignored the revolutionary potential of heterodox economics for reconstructing macroeconomics. This new book points out the right direction for the coming macroeconomics revolution.” ―Jia Genliang, Renmin University of China

“Finally, a macroeconomics text that takes a modern-monetary approach to the macroeconomy. Finally, an alternative to the mainstream vision of the macro economy and what it says and, more importantly, fails to say, about the real world. The presentation of Keynes closely approximates his vision, a much-needed change from texts that present a “bastardized” view of Keynes' theory. The book is highly readable, the assumptions underlying the different models are presented clearly, the logic easy to follow, and the historical context serves to add relevance.” ―John P. Watkins, Westminster College, Utah, USA

“A complete, up-to-date and excellent account of macroeconomic theory. An excellent critique of the mainstream economic paradigm, it calls for more realistic approaches to human behaviour, and for heterodox ideas in economics. It presents macroeconomic methodology in the light of the 2007-08 crisis, and outlines how economics should proceed in the post-crash world. One of the most interesting and remarkable macroeconomics textbooks of the past few years.” ―Omar Feraboli, University of Dundee, UK

“Finally, a macro textbook that rejects neoclassical microfoundations as a basis for understanding how capitalism works. The authors replace maximizing individuals with social classes where capitalist firms exercising differential power largely determine economic outcomes.” ―Robert Chernomas, University of Manitoba, Canada

“The most progressive macroeconomics textbook on the market. Organized around a balance sheet view, the authors carefully examine the most important issues of our time: Why government as the sovereign issuer of currency is not financially constrained, how banks create deposits by making loans and how the central bank influences the economy by shifting interest rates. The authors are outstanding scholars of macroeconomics, and this textbook should enlighten the next generation of students. I recommend it wholeheartedly.” ―Dirk Ehnts, Europa-Universität Flensburg, Germany

“A uniquely well-structured, clear discussion of macroeconomics for the 21st century, contrasting a useful and realistic analysis of a modern monetary production economy with the flawed, unrealistic and outdated narrowly neoclassical approach which has failed so comprehensively in recent years. Quite simply the best economics textbook I have ever read, and one which should become a standard text in many universities and colleges in the years to come.” ―Steven Hail, University of Adelaide, Australia

“Supremely accessible … Unlike most other textbooks, it explains schools of thought, relates them to the history of economic ideas and provides historical and institutional detail. Students are invited to reflect on why economists disagree, what macroeconomics means, and the role of language and framing. One can only wish that all textbooks nurtured sensitivity to these topics in future economists. All in all, an exceptionally clear text for students new to macroeconomics and a good grounding in the current policy debates shown in the final part of the book ... It marries pluralism of ideas with a clear exposition of Modern Monetary Theory, all with institutional realism and analytical rigor - a major feat. Highly recommended!” ―Dirk J. Bezemer, University of Groningen, Netherlands

“This is a long awaited first-year university textbook where heterodox and mainstream approaches run side by side within a critical framework which avoids the pedagogical pitfall of forcing students to learn economics through mainstream lenses. Students and experienced economists alike can learn from this wonderful book.” ―Alberto Paloni, University of Glasgow, UK

Even some mainstream economists now acknowledge that the macroeconomics of the past thirty years represents a big step back. But they do not recognize that this is because it lacks a pluralist perspective, and in the meantime they have ignored the revolutionary potential of heterodox economics for reconstructing macroeconomics. This new book points out the right direction for the coming macroeconomics revolution. –Jia Genliang, Renmin University of China.

Finally, a macroeconomics text that takes a modern-monetary approach to the macroeconomy. Finally, an alternative to the mainstream vision of the macro economy and what it says and, more importantly, fails to say, about the real world. The presentation of Keynes closely approximates his vision, a much-needed change from texts that present a “bastardized” view of Keynes’ theory. The book is highly readable, the assumptions underlying the different models are presented clearly, the logic easy to follow, and the historical context serves to add relevance. –John P. Watkins, Westminster College, Utah, USA

A complete, up-to-date and excellent account of macroeconomic theory. An excellent critique of the mainstream economic paradigm, it calls for more realistic approaches to human behaviour, and for heterodox ideas in economics. It presents macroeconomic methodology in the light of the 2007-08 crisis, and outlines how economics should proceed in the post-crash world. One of the most interesting and remarkable macroeconomics textbooks of the past few years. –Omar Feraboli, University of Dundee, UK

Finally, a macro textbook that rejects neoclassical microfoundations as a basis for understanding how capitalism works. The authors replace maximizing individuals with social classes where capitalist firms exercising differential power largely determine economic outcomes. –Robert Chernomas, University of Manitoba, Canada

The most progressive macroeconomics textbook on the market. Organized around a balance sheet view, the authors carefully examine the most important issues of our time: Why government as the sovereign issuer of currency is not financially constrained, how banks create deposits by making loans and how the central bank influences the economy by shifting interest rates. The authors are outstanding scholars of macroeconomics, and this textbook should enlighten the next generation of students. I recommend it wholeheartedly. –Dirk Ehnts, Europa-Universität Flensburg, Germany

A uniquely well-structured, clear discussion of macroeconomics for the 21st century, contrasting a useful and realistic analysis of a modern monetary production economy with the flawed, unrealistic and outdated narrowly neoclassical approach which has failed so comprehensively in recent years. Quite simply the best economics textbook I have ever read, and one which should become a standard text in many universities and colleges in the years to come. –Steven Hail, University of Adelaide, Australia

Supremely accessible…Unlike most other textbooks, it explains schools of thought, relates them to the history of economic ideas and provides historical and institutional detail. Students are invited to reflect on why economists disagree, what macroeconomics means, and the role of language and framing. One can only wish that all textbooks nurtured sensitivity to these topics in future economists. All in all, an exceptionally clear text for students new to macroeconomics and a good grounding in the current policy debates shown in the final part of the book.. It marries pluralism of ideas with a clear exposition of Modern Monetary Theory, all with institutional realism and analytical rigor - a major feat. Highly recommended! –Dirk J. Bezemer, University of Groningen, Netherlands

This is a long awaited first-year university textbook where heterodox and mainstream approaches run side by side within a critical framework which avoids the pedagogical pitfall of forcing students to learn economics through mainstream lenses. Students and experienced economists alike can learn from this wonderful book. –Alberto Paloni, University of Glasgow, UK

Macroeconomics provides an exceptionally comprehensive and balanced guide to macroeconomics from both orthodox and heterodox views (post-Keynesian, institutionalists, and Marxian). It covers important but rarely discussed topics at the introductory level such as measurement of inequality, endogenous money and Modern Money Theory (MMT), quantitative easing, negative interest rates policies, theory of effective demand, full employment policy, economic instability, and environmental sustainability. This is a truly important and innovative introduction to macroeconomics, not only for beginning students, but also even for professional economists who would like an introduction to some of these important subjects that orthodox economics neglect. Kudos to the authors! –Y.K. Kim, University of Massachusetts Boston, USA

This groundbreaking new core textbook encourages students to take a more critical approach to the prevalent assumptions around the subject of macroeconomics, by comparing and contrasting heterodox and orthodox approaches to theory and policy. The first such textbook to develop a heterodox model from the ground up, it is based on the principles of Modern Monetary Theory (MMT) as derived from the theories of Keynes, Kalecki, Veblen, Marx, and Minsky, amongst others. The internationally-respected author team offer appropriate fiscal and monetary policy recommendations, explaining how the poor economic performance of most of the wealthy capitalist countries over recent decades could have been avoided, and delivering a well-reasoned practical and philosophical argument for the heterodox MMT approach being advocated.

The book is suitable for both introductory and intermediate courses, offering a thorough overview of the basics, while covering everything needed for more advanced courses. Issues are explained conceptually, with the more technical, mathematical material in chapter appendices, offering greater flexibility of lecturer use.

Key features include;

Pluralistic coverage of macro thought, with both mainstream neoclassical principles and the MMT alternative defined and discussed in detail, offering students a critical analysis of the subject.

Valuable historical context is provided, showing the evolution of macroeconomics as a discipline, and the emergence and divergence of its different schools.

A focus on the realities of how money and banks operate, and on applied theories of financial instability, combined to give an unrivalled real-world insight into how the economy actually works.

Truly global approach and perspective, with a high-profile author team drawn from the US and Australia.

Companion website offers additional resources including an instructor’s manual, worked examples, tutorial questions, and additional references.

William Mitchell is a Professor of Economics at the University of Newcastle, Australia

L. Randall Wray is a Senior Scholar at the Levy Economics Institute of Bard College, USA

Martin Watts is a Professor of Economics at the University of Newcastle, Australia
William Mitchell is a Professor of Economics at the University of Newcastle, Australia

L. Randall Wray is a Senior Scholar at the Levy Economics Institute of Bard College, USA
Martin Watts is a Professor of Economics at the University of Newcastle, Australia