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Macroeconomics

Macroeconomics is a branch of economics that deals with the performance, structure, behavior, and decision-making of an economy as a whole.[1] This includes regional, national, and global economies.[2][3] Macroeconomists study topics such as output/GDP (gross domestic product) and national income, unemployment (including unemployment rates), price indices and inflation, consumption, saving, investment, energy, international trade, and international finance.

Not to be confused with microeconomics.

Macroeconomics and microeconomics are the two most general fields in economics.[4] The focus of macroeconomics is often on a country (or larger entities like the whole world) and how its markets interact to produce large-scale phenomena that economists refer to as aggregate variables. In microeconomics the focus of analysis is often a single market, such as whether changes in supply or demand are to blame for price increases in the oil and automotive sectors. From introductory classes in "principles of economics" through doctoral studies, the macro/micro divide is institutionalized in the field of economics. Most economists identify as either macro- or micro-economists.


Macroeconomics is traditionally divided into topics along different time frames: the analysis of short-term fluctuations over the business cycle, the determination of structural levels of variables like inflation and unemployment in the medium (i.e. unaffected by short-term deviations) term, and the study of long-term economic growth. It also studies the consequences of policies targeted at mitigating fluctuations like fiscal or monetary policy, using taxation and government expenditure or interest rates, respectively, and of policies that can affect living standards in the long term, e.g. by affecting growth rates.


Macroeconomics as a separate field of research and study is generally recognized to start in 1936, when John Maynard Keynes published his The General Theory of Employment, Interest and Money, but its intellectual predecessors are much older. Since World War II, various macroeconomic schools of thought like Keynesians, monetarists, new classical and new Keynesian economists have made contributions to the development of the macroeconomic research mainstream.

the short run (e.g. a few years): Focus is on fluctuations and changes in aggregate demand which often drive them. Stabilization policies like monetary policy or fiscal policy are relevant in this time frame

business cycle

the medium run (e.g. a decade): Over the medium run, the economy tends to an output level determined by supply factors like the capital stock, the technology level and the labor force, and unemployment tends to revert to its structural (or "natural") level. These factors move slowly, so that it is a reasonable approximation to take them as given in a medium-term time scale, though and competition policy are instruments that may influence the economy's structures and hence also the medium-run equilibrium

labour market policies

the long run (e.g. a couple of decades or more): On this time scale, emphasis is on the determinants of long-run like accumulation of human and physical capital, technological innovations and demographic changes. Potential policies to influence these developments are education reforms, incentives to change saving rates or to increase R&D activities.

economic growth

the financial system and the nature of macrofinancial linkages and frictions, studying leverage, liquidity and complexity problems in the financial sector, the use of and the dangers of an unsustainable public debt[5]: 537 [26]

macroprudential tools

increased emphasis on as part of the so-called credibility revolution in economics, using improved methods to distinguish between correlation and causality to improve future policy discussions[27]

empirical work

interest in understanding the importance of among the economic agents, leading among other examples to the construction of heterogeneous agent new Keynesian models (HANK models), which may potentially also improve understanding of the impact of macroeconomics on the income distribution[28]

heterogeneity

understanding the implications of integrating the findings of the increasingly useful literature into macroeconomics[29] and behavioral finance

behavioral economics

Business cycle accounting

Economic development

Growth accounting

Blanchard, Olivier. (2009). "." Annual Review of Economics 1(1): 209–228.

The State of Macro

Blanchard, Olivier (2021). Macroeconomics (Eighth, global ed.). Harlow, England: Pearson.  978-0-134-89789-9.

ISBN

Blaug, Mark (2002). "Endogenous growth theory". In Snowdon, Brian; Vane, Howard (eds.). . Northampton, Massachusetts: Edward Elgar Publishing. ISBN 978-1-84542-180-9.

An Encyclopedia of Macroeconomics

Dimand, Robert W. (2008). . In Durlauf, Steven N.; Blume, Lawrence E. (eds.). The New Palgrave Dictionary of Economics. Palgrave Macmillan UK. pp. 236–44. doi:10.1057/9780230226203.1009. ISBN 978-0-333-78676-5.

"Macroeconomics, origins and history of"

Durlauf, Steven N.; Hester, Donald D. (2008). . In Durlauf, Steven N.; Blume, Lawrence E. (eds.). The New Palgrave Dictionary of Economics (2nd ed.). Palgrave Macmillan. pp. 585–91. doi:10.1057/9780230226203.0855. ISBN 978-0-333-78676-5.

"IS–LM"

Dwivedi, D.N. (2001). Macroeconomics: theory and policy. New Delhi: Tata McGraw-Hill.  978-0-07-058841-7.

ISBN

Gärtner, Manfred (2006). Macroeconomics. Pearson Education Limited.  978-0-273-70460-7.

ISBN

Healey, Nigel M. (2002). "AD-AS model". In Snowdon, Brian; Vane, Howard (eds.). . Northampton, Massachusetts: Edward Elgar Publishing. pp. 11–18. ISBN 978-1-84542-180-9.

An Encyclopedia of Macroeconomics

Levi, Maurice (2014). The Macroeconomic Environment of Business (Core Concepts and Curious Connections). New Jersey: World Scientific Publishing.  978-981-4304-34-4.

ISBN

Mankiw, Nicholas Gregory (2022). Macroeconomics (Eleventh, international ed.). New York, NY: Worth Publishers, Macmillan Learning.  978-1-319-26390-4.

ISBN

Mayer, Thomas (2002). "Monetary policy: role of". In Snowdon, Brian; Vane, Howard R. (eds.). . Northampton, Massachusetts: Edward Elgar Publishing. pp. 495–99. ISBN 978-1-84542-180-9.

An Encyclopedia of Macroeconomics

Nakamura, Emi and Jón Steinsson. (2018). "" Journal of Economic Perspectives 32(3): 59–86.

Identification in Macroeconomics.

Peston, Maurice (2002). "IS-LM model: closed economy". In Snowdon, Brian; Vane, Howard R. (eds.). . Edward Elgar. ISBN 9781840643879.

An Encyclopedia of Macroeconomics

Romer, David (2019). Advanced macroeconomics (Fifth ed.). New York, NY: McGraw-Hill.  978-1-260-18521-8.

ISBN

Solow, Robert (2002). "Neoclassical growth model". In Snowdon, Brian; Vane, Howard (eds.). . Northampton, Massachusetts: Edward Elgar Publishing. ISBN 1840643870.

An Encyclopedia of Macroeconomics

Snowdon, Brian, and Howard R. Vane, ed. (2002). An Encyclopedia of Macroeconomics, & scroll to Contents-preview links.

Description

Snowdon, Brian; Vane, Howard R. (2005). Modern Macroeconomics: Its Origins, Development And Current State. Edward Elgar Publishing.  1845421809.

ISBN

Sørensen, Peter Birch; Whitta-Jacobsen, Hans Jørgen (2022). Introducing advanced macroeconomics: growth and business cycles (Third ed.). Oxford, United Kingdom New York, NY: Oxford University Press.  978-0-19-885049-6.

ISBN

Warsh, David (2006). . Norton. ISBN 978-0-393-05996-0.

Knowledge and the Wealth of Nations

Glandon, P. J., Ken Kuttner, Sandeep Mazumder, and Caleb Stroup. 2023. "" Journal of Economic Literature, 61 (3): 1088-1126.

Macroeconomic Research, Present and Past.