Macroeconomics, Canadian Edition, 6th edition

Published by Pearson Canada (January 2, 2020) © 2021

  • Stephen D. Williamson Western University

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For courses in undergraduate Macroeconomics courses.

A modern approach to teaching macroeconomics

This text follows a modern approach to macroeconomics by building macroeconomic models from microeconomic principles. As such, it is consistent with the way that macroeconomic research is conducted today. This approach has three advantages. First, it allows deeper insights into economic growth processes and business cycles, the key topics in macroeconomics. Second, an emphasis on microeconomic foundations better integrates the study of macroeconomics with approaches that students learn in microeconomics courses and in economics field courses. Learning in macroeconomics and microeconomics thus becomes mutually reinforcing, and students learn more. Third, in following an approach to macroeconomics that is consistent with current macroeconomic research, students will be better prepared for advanced study in economics. 

Hallmark features of this title

  • Real-World Applications. Applications to current and historical problems are emphasized throughout in two running features. The first is a series of Theory Confronts the Data boxes, which show how macroeconomic theory comes to life in matching (or sometimes falling short of matching) the characteristics of real-world economic data. A sampling of some of these sections includes the “The Beveridge Curve,” “News, the Stock Market, and Investment Expenditures,” and “Instability in the Money Demand Function in Canada.”
  • Visualization of Data. Graphs and charts are plentiful in this text. They act as visual representations of macroeconomic models that can be manipulated to derive important results and show the key features of important macro data in applications. To aid the student, graphs and charts use a consistent system that encodes the meaning of particular elements in graphs and of shifts in curves.
  • Problems. The end-of-chapter problems will help the student in learning the material and applying the macroeconomic models developed in the chapter. These problems are intended to be challenging and thought provoking. Students can complete these problems on the MyLab Economics, new for this edition, and receive feedback and tutorial help.

New and updated features of this title

  • As the world shifts to a greater reliance on digital media, it is appropriate that this text evolves as well. This Sixth Canadian Edition is the first fully digital version of Macroeconomics. Instructors and students will find that, although the medium has changed, the content is fully consistent with prior editions.
  • Organizational changes: Chapters 13 and 14 from the fifth edition have been merged into a single chapter - Chapter 13 Business Cycles - and Chapter 18 from the fifth edition has been split into two chapters -- Chapter 17 Money and Inflation: A Deeper Look, and Chapter 18 Financial Intermediation and Banking.
  • New MyLab Economics personalizes the learning experience and improves results for each student. MyLab Economics helps students have more practice and build their problem-solving skills.
  • We have replaced several Macroeconomics in Action and Theory Confronts the Data with new topics to ensure contemporary relevance of the material.
  1. Introduction
  2. Measurement
  3. Business Cycle Measurement 
  4. Consumer and Firm Behaviour: The Work-Leisure Decision and Profit Maximization
  5. A Closed-Economy One-Period Macroeconomic Model
  6. Search and Unemployment
  7. Economic Growth: Malthus and Solow
  8. Income Disparity Among Countries and Endogenous Growth 
  9. A Two-Period Model: The Consumption-Savings Decision and Credit Markets
  10. Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security
  11. A Real Intertemporal Model with Investment 
  12. A Monetary Intertemporal Model: Money, Banking, Prices, and Monetary Policy 
  13. Business Cycles
  14. Inflation: Phillips Curves and Neo-Fisherism
  15. International Trade in Goods and Assets
  16. Money in the Open Economy 
  17. Money and Inflation: A Deeper Look
  18. Financial Intermediation and Banking

Stephen Williamson is the Stephen A. Jarislowsky Chair in Central Banking at Western University (also known as the University of Western Ontario), in London, Ontario. He received a B.Sc. (Honours, Mathematics) and an M.A. in Economics from Queen’s University in Kingston, Ontario, and received his Ph.D. from the University of Wisconsin– Madison in 1984. He has held academic positions at Queen’s University, Western University, the University of Iowa, and Washington University in St. Louis, and has worked as an economist at the Federal Reserve Bank of St. Louis, the Federal Reserve Bank of Minneapolis, and the Bank of Canada. Professor Williamson has also been an academic visitor at the Federal Reserve Banks of Atlanta, Kansas City, Minneapolis, Cleveland, and Philadelphia, at the Board of Governors of the Federal Reserve System in Washington, D.C., and at the Bank of Canada. He has been a long-term visitor at the University of Tilburg, the Netherlands; the London School of Economics; the University of Edinburgh; Victoria University of Wellington, New Zealand; Seoul National University; Hong Kong University; Indiana University; and Fudan University, Shanghai. Professor Williamson has published scholarly articles in the American Economic Review, the Journal of Political Economy, the Quarterly Journal of Economics, the Review of Economic Studies, the Journal of Economic Theory, and the Journal of Monetary Economics, among other prestigious economics journals. His research, focused mainly on macroeconomics, monetary theory, and the theory of financial intermediation, has been supported by the Jarislowsky Foundation, the Bank of Canada Fellowship Program, the National Science Foundation, the Lynde and Harry Bradley Foundation, and the Social Sciences and Humanities Research Council of Canada. Professor Williamson lives in London, Ontario.

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