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Macroeconomics, 12th edition

Published by Pearson (April 8, 2011) © 2012

  • Robert J. Gordon Northwestern University

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Macroeconomics is widely praised for its ability to present theory as a way of evaluating key macro questions, such as why some countries are rich and others are poor.
Students have a natural interest in what is happening today and what will happen in the near future. Macroeconomics capitalizes on their interest by beginning with business cycles and monetary-fiscal policy in both closed and open economy. After that, Gordon presents a unique dynamic analysis of demand and supply shocks as causes of inflation and unemployment, followed by a dual approach to economic growth in which theory and real-world examples are used to compare rich and poor countries.

MyEconLab New Design is now available for this title!  MyEconLab New Design offers: 

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  • Enhanced eText. Available within the online course materials and offline via an iPad app, the enhanced eText allows instructors and students to highlight, bookmark, take notes, and share with one another.
Macroeconomics is widely praised for its ability to present theory as a way of evaluating key macro questions, such as why some countries are rich and others are poor.
Students have a natural interest in what is happening today and what will happen in the near future. Macroeconomics capitalizes on their interest by beginning with business cycles and monetary-fiscal policy in both closed and open economy. After that, Gordon presents a unique dynamic analysis of demand and supply shocks as causes of inflation and unemployment, followed by a dual approach to economic growth in which theory and real-world examples are used to compare rich and poor countries.
  • Theory as a way to evaluate macro questions. Gordon believes that all macro questions relate to a core set of basic macro puzzles and presents theory with this in mind. Students not only see how theory applies to the real world, but they also learn how to recognize the connections between concepts, such as output and unemployment.
  • Patient and early introduction to business cycles. Because students care most about today’s issues, business cycles and inflation are discussed up front. The IS-LM model is presented early, and an integrated treatment covers monetary and fiscal policy stabilization, fiscal and foreign deficits and national saving, and the interplay between the balance of payments and exchange rates.
  • A dynamic version of the AS-AD model. Gordon pioneered the dynamic analysis of aggregate demand and supply shocks that can cause inflation and unemployment to be either positively or negatively correlated. In this edition, the rising prices of oil provide a new test for this theory.
  • A clear distinction between short- and long-run macro models. By clearly distinguishing short-run macro (business cycles and their prevention) from long-run macro (economic growth and the long-run consequences of debt and deficits), Gordon helps students understand how different models relate and connect to one another.
  • Pedagogically designed figures. Color is used consistently throughout chapters to demonstrate the link between theoretical curves and related data graphs.
  • Case studies. Directly following theoretical discussions, case studies bring the material to life using real-world examples to which students can relate.
  • International Perspective boxes. Students gain a well-rounded view of the global economy through International Perspective boxes that compare economic performance in the United States with selected foreign countries.
  • Self-Tests. At the end of every section, Self-Tests immediately check to ensure students retain the topics covered. Answers are provided at the end of each chapter.
  • Data Appendixes. A robust set of data tables is available as appendixes, including annual data for the U.S. back to 1875 and quarterly data back to 1947, as well as annual data since 1960 for other leading nations. This data can also be downloaded from the Companion Website.

MyEconLab New Design is now available for this title!  MyEconLab New Design offers: 

  • One Place for All of Your Courses. Improved registration experience and a single point of access for instructors and students who are teaching and learning multiple MyLab/Mastering courses.
  • A Simplified User Interface.  The new user interface offers quick and easy access to Assignments, Study Plan, eText & Results, as well as additional option for course customization.
  • New Communication Tools. The following new communication tools can be used to foster collaboration, class participation, and group work.
    • Email: Instructors can send emails to their entire class, to individual students or to instructors who has access to their course.
    • Discussion Board: The discussion board provides students with a space to respond and react to the discussions you create. These posts can also be separated out into specific topics where students can share their opinions/answers and respond to their fellow classmates’ posts.
    • Chat/ ClassLive: ClassLive is an interactive chat tool that allows instructors and students to communicate in real time. ClassLive can be used with a group of students or one-on-one to share images or PowerPoint presentations, draw or write objects on a whiteboard, or send and received graphed or plotted equations. ClassLive also has additional classroom management tools, including polling and hand-raising.
  • Enhanced eText. Available within the online course materials and offline via an iPad app, the enhanced eText allows instructors and students to highlight, bookmark, take notes, and share with one another.

Macroeconomics is widely praised for its ability to present theory as a way of evaluating key macro questions, such as why some countries are rich and others are poor.
Students have a natural interest in what is happening today and what will happen in the near future. Macroeconomics capitalizes on their interest by beginning with business cycles and monetary-fiscal policy in both closed and open economy. After that, Gordon presents a unique dynamic analysis of demand and supply shocks as causes of inflation and unemployment, followed by a dual approach to economic growth in which theory and real-world examples are used to compare rich and poor countries.

NEW TO THIS EDITION:

Gordon's Twelfth edition of Macroeconomics, not only helps intermediate macroeconomics instructors and their students understand the causes of the 2007-09 Global Economic Crisis (also called the Great Recession) but also the reasons why the recovery has been so slow. 
  • NEW! Chapter 5 “Financial Markets, Financial Regulation, and Economic Instability” introduces the new concepts relevant to the housing bubble and financial market meltdown, including risk, leverage, securitization, and bubbles.   
  • Debate about the Obama stimulus motivates a new section in Chapter 6 that explains why fiscal multipliers are so different for alternative types of policies, and why it is so difficult to design a stimulus program.  Also, a unique set of graphs compares fiscal policy in 1933-41 with 2005-10. 
  • NEW!  Global Economic Crisis Focus is a new pedagogical tool that uses the reality of the Crisis and its aftermath to energize student learning throughout the book. This feature is sprinkled throughout nearly every chapter, not just to reinforce the teaching of the causes and cures of the Crisis itself, but to provide the student with a jolt that emphasizes “a basic concept about which you are reading right now is directly relevant to understanding the Crisis.”
  • Gordon focuses on "differences among countries" in the International Perspective feature located in every chapter!  These topical “IP” boxes have been updated to provide new material relevant to understanding the Crisis, including:
    • "Why the Great Depression was worse in the US than in Europe," and “Institutions Matter:  North Korea vs. South Korea,” and numerous others.
  • Understanding the Global Economic Crisis.  Several new topic boxes are directly relevant to explanations of the Global Economic Crisis.  These have a separate icon and design treatment.
  • Gordon has simplified and shortened the twelfth edition:   Numerical examples have been removed from the graphs in Chapter 3 and 4 on the Keynesian 45-degree model and the IS-LM model; this simplifies the exposition while still allowing numerical examples both within the text itself and also in the end-of-chapter questions and problems.  The derivation of the short-run aggregate supply (SAS) curve in Chapter 8 (previous Chapter 7) has been simplified to eliminate any need to introduce explicit graphs showing the demand for and supply of labor. 
  • Gordon continues the tradition of providing unique data graphs that go far beyond the standard graphs that oth

    • Table of Contents

    • CHAPTER 1 What Is Macroeconomics?
      • 1-1 How Macroeconomics Affects Our Everyday Lives
      • Global Economic Crisis Focus: What Makes It Unique?
      • 1-2 Defining Macroeconomics
      • 1-3 Actual and Natural Real GDP
      • 1-4 Macroeconomics in the Short Run and Long Run
      • 1-5 CASE STUDY: How Does the Global Economic Crisis Compare to Previous Business Cycles?
      • Global Economic Crisis Focus: How It Differs from 1982—83
      • 1-6 Macroeconomics at the Extremes
      • 1-7 Taming Business Cycles: Stabilization Policy
      • International Perspective: Differences Between the United States and Europe Before and During the Global Economic Crisis
      • Global Economic Crisis Focus: New Challenges for Monetary and Fiscal Policy
      • 1-8 The “Internationalization” of Macroeconomics
    • CHAPTER 2 The Measurement of Income, Prices, and Unemployment
      • 2-1 Why We Care About Income
      • 2-2 The Circular Flow of Income and Expenditure
      • 2-3 What GDP Is, and What GDP Is Not
      • [BOX]Where to Find the Numbers: A Guide to the Data
      • 2-4 Components of Expenditure
      • Global Economic Crisis Focus: Which Component of GDP Declined the Most in the Global Economic Crisis?
      • 2-5 The “Magic” Equation and the Twin Deficits
      • Global Economic Crisis Focus: Chicken or Egg in Recessions?
      • 2-6 Where Does Household Income Come From?
      • 2-7 Nominal GDP, Real GDP, and the GDP Deflator
      • [BOX] How to Calculate Inflation, Real GDP Growth, or Any Other Growth Rate
      • 2-8 Measuring Unemployment
      • Understanding the Global Economic Crisis: The Ranks of the Hidden Unemployed
      • APPENDIX TO CHAPTER 2: How We Measure Real GDP and the Inflation Rate
    • CHAPTER 3 Income and Interest Rates: The Keynesian Cross Model and the IS Curve
      • 3-1 Business Cycles and the Theory of Income Determination
      • Global Economic Crisis Focus: What Were the Shocks That Made the 2008—09 Economic Crisis So Severe?
      • 3-2 Income Determination, Unemployment, and the Price Level
      • 3-3 Planned Expenditure
      • Global Economic Crisis Focus: Financial Market Instability as the Main Cause of the Global Economic Crisis
      • 3-4 The Economy In and Out of Equilibrium
      • Understanding the Global Economic Crisis: How Changes in Wealth Influence Consumer Spending
      • 3-5 The Multiplier Effect
      • 3-6 Sources of Shifts in Planned Spending
      • 3-7 How Can Monetary Policy Affect Planned Spending?
      • 3-8 The Relation of Autonomous Planned Spending to the Interest Rate
      • Understanding the Global Economic Crisis: A Central Explanation of Business Cycles Is the Volatility of Investment
      • 3-9 The IS Curve
      • 3-10 Conclusion: The Missing Relation
      • [BOX] Learning About Diagrams: The IS Curve
      • APPENDIX TO CHAPTER 3:Allowing for Income Taxes and Income-Dependent Net Exports
    • CHAPTER 4 Strong and Weak Policy Effects in the IS-LM Model
      • 4-1 Introduction: The Power of Monetary and Fiscal Policy
      • 4-2 Income, the Interest Rate, and the Demand for Money
      • 4-3 The LM Curve
      • [BOX]Learning About Diagrams: The LM Curve
      • 4-4 The IS Curve Meets the LM Curve
      • Global Economic Crisis Focus: TITLE TO COME
      • 4-5 Monetary Policy in Action
      • 4-6 How Fiscal Expansion Can “Crowd Out” Private Investment
      • Global Economic Crisis Focus: TITLE TO COME
      • 4-7 Strong and Weak Effects of Monetary Policy
      • Understanding the Global Economic Crisis: How Easy Money Helped to Create the Housing Bubble and Bust
      • 4-8 Strong and Weak Effects of Fiscal Policy
      • 4-9 Using Fiscal and Monetary Policy Together
      • International Perspective: Monetary Policy Hits the Zero Lower Bound in Japan and the United States
      • APPENDIX TO CHAPTER 4:The Elementary Algebra of the IS-LM Model
    • CHAPTER 5 Financial Markets, Financial Regulation, and Economic Instability
      • 5-1 Introduction: Financial Markets and Macroeconomics
      • 5-2 CASE STUDY: Dimensions of the Global Economic Crisis
      • 5-3 Financial Institutions, Balance Sheets, and Leverage
      • 5-4 A Hardy Perennial: Bubbles and Crashes
      • Understanding the Global Economic Crisis: Two Bubbles: 1927—29 in the Stock Market Versus 2000—06 in the Housing Market
      • 5-5 Financial Innovation and the Subprime Mortgage Market
      • 5-6 The IS-LM Model, Financial Markets, and the Monetary Policy Dilemma
      • [BOX] Why Do Asset Purchases Reduce Interest Rates?
      • Understanding the Global Economic Crisis: The IS-LM Summary of the Causes of the Global Economic Crisis
      • 5-7 The Fed’s New Instrument: Quantitative Easing
      • 5-8 How the Crisis Became Worldwide and the Dilemma for Policymakers
      • International Perspective: Weighing the Causes: Why Did Canada Perform Better?
    • CHAPTER 6 The Government Budget, the Government Debt, and Limitations of Fiscal Policy
      • 6-1 Introduction: Can Fiscal Policy Rescue Monetary Policy from Ineffectiveness?
      • 6-2 The Pervasive Effects of the Government Budget
      • 6-3 CASE STUDY:The Government Budget in Historical Perspective
      • 6-4 Automatic Stabilization and Discretionary Fiscal Policy
      • Global Economic Crisis Focus: Automatic Stabilization and Fiscal Stimulus in the Crisis
      • 6-5 Government Debt Basic Concepts
      • 6-6 Will the Government Remain Solvent?
      • International Perspective: The Debt-GDP Ratio: How Does the United States Compare?
      • 6-7 CASE STUDY: Historical Behavior of the Debt-GDP Ratio Since 1790
      • 6-8 Factors Influencing the Multiplier Effect of a Fiscal Policy Stimulus
      • 6-9 CASE STUDY: The Fiscal Policy Stimulus of 2008—11
      • 6-10 Government Spending and Transfers to States/Localities
      • Understanding the Global Economic Crisis: Comparing the Obama Stimulus with FDR’s New Deal
      • 6-11 Conclusion: Strengths and Limitations of Fiscal Policy
    • CHAPTER 7 International Trade, Exchanges Rates, and Macroeconomic Policy
      • 7-1 Introduction
      • 7-2 The Current Account and Balance of Payments
      • 7-3 Exchange Rates
      • 7-4 The Market for Foreign Exchange
      • 7-5 Real Exchange Rates and Purchasing Power Parity
      • International Perspective: Big Mac Meets PPP
      • 7-6 Exchange Rate Systems
      • 7-7 CASE STUDY: Asia Intervenes with Buckets to Buy Dollars and Finance the U.S. Current Account Deficit–How Long Can This Continue?
      • 7-8 Determinants of Net Exports
      • 7-9 The Real Exchange Rate and Interest Rate
      • 7-10 Effects of Monetary and Fiscal Policy with Fixed and Flexible Exchange Rates
      • Global Economic Crisis Focus: Is the United States Prevented from Implementing a Fiscal Policy Stimulus by Its Flexible Exchange Rate?
      • [BOX] Summary of Monetary and Fiscal Policy Effects in Open Economies
      • 7-11 Conclusion: Economic Policy in the Open Economy
    • CHAPTER 8 Aggregate Demand, Aggregate Supply, and the Great Depression
      • 8-1 Combining Aggregate Demand with Aggregate Supply
      • 8-2 Flexible Prices and the AD Curve
      • 8-3 Shifting the Aggregate Demand Curve with Monetary and Fiscal Policy
      • Global Economic Crisis Focus: The Crisis Was a Demand Problem Not Involving Supply
      • [BOX] Learning About Diagrams: The AD Curve
      • 8-4 Alternative Shapes of the Short-Run Aggregate Supply Curve
      • 8-5 The Short-Run Aggregate Supply (SAS) Curve When the Nominal Wage Rate Is Constant
      • [BOX] Learning About Diagrams: The SAS Curve
      • 8-6 Fiscal and Monetary Expansion in the Short and Long Run
      • [BOX] Summary of the Economy’s Adjustment to an Increase in Aggregate Demand
      • 8-7 Classical Macroeconomics: The Quantity Theory of Money and the Self-Correcting Economy
      • 8-8 The Keynesian Revolution: The Failure of Self-Correction
      • Global Economic Crisis Focus: The Zero Lower Bound as Another Source of Monetary Impotence
      • 8-9 CASE STUDY: What Caused the Great Depression?
      • International Perspective: Why Was the Great Depression Worse in the United States Than in Europe?
    • CHAPTER 9 Inflation: Its Causes and Cures
      • 9-1 Introduction
      • 9-2 Real GDP, the Inflation Rate, and the Short-Run Phillips Curve
      • 9-3 The Adjustment of Expectations
      • [BOX] Learning About Diagrams: The Short-Run (SP) and Long-Run (LP) Phillips Curves
      • 9-4 Nominal GDP Growth and Inflation
      • 9-5 Effects of an Acceleration in Nominal GDP Growth
      • 9-6 Expectations and the Inflation Cycle
      • 9-7 Recession as a Cure for Inflation
      • International Perspective: Did Disinflation in Europe Differ from That in the United States?
      • Global Economic Crisis Focus: Policymakers Face the Perils of Deflation
      • 9-8 The Importance of Supply Shocks
      • [BOX] Types of Supply Shocks and When They Mattered
      • 9-9 The Response of Inflation and the Output Ratio to a Supply Shock
      • Understanding the Global Economic Crisis: The Role of Inflation During the Housing Bubble and Subsequent Economic Collapse
      • 9-10 Inflation and Output Fluctuations: Recapitulation of Causes and Cures
      • 9-11 How Is the Unemployment Rate Related to the Inflation Rate?
      • APPENDIX TO CHAPTER 9: The Elementary Algebra of the SP-DG Model
    • CHAPTER 10 The Goals of Stabilization Policy: Low Inflation and Low Unemployment
      • Global Economic Crisis Focus: Inflation Versus Unemployment in the Crisis
      • 10-1 The Costs and Causes of Inflation
      • 10-2 Money and Inflation
      • International Perspective: Money Growth and Inflation
      • 10-3 Why Inflation Is Not Harmless
      • Global Economic Crisis Focus: The Housing Bubble as Surprise Inflation Followed by Surprise Deflation
      • [BOX] The Wizard of Oz as a Monetary Allegory
      • 10-4 Indexation and Other Reforms to Reduce the Costs of Inflation
      • [BOX] The Indexed Bond (TIPS) Protects Investors from Inflation
      • 10-5 The Government Budget Constraint and the Inflation Tax
      • Understanding the Global Economic Crisis: How a Large Recession Can Create a Large Fiscal Deficit
      • 10-6 Starting and Stopping a Hyperinflation
      • 10-7 Why the Unemployment Rate Cannot Be Reduced to Zero
      • 10-8 Sources of Mismatch Unemployment
      • Global Economic Crisis Focus: The Crisis Raises the Incidence of Structural Unemployment
      • 10-10 The Costs of Persistently High Unemployment
      • Understanding the Global Economic Crisis: Why Did Unemployment Rise Less in Europe Than in the United States After 2007?
      • 10-11 Conclusion: Solutions to the Inflation and Unemployment Dilemma
    • CHAPTER 11 The Theory of Economic Growth
      • 11-1 The Importance of Economic Growth
      • 11-2 Standards of Living as the Consequence of Economic Growth
      • International Perspective: The Growth Experience of Seven Countries Over the Last Century
      • 11-3 The Production Function and Economic Growth
      • 11-4 Solow’s Theory of Economic Growth
      • 11-5 Technology in Theory and Practice
      • 11-6 Puzzles That Solow’s Theory Cannot Explain
      • 11-7 Human Capital, Immigration, and the Solow Puzzles
      • 11-8 Endogenous Growth Theory: How Is Technological Change Produced?
      • 11-9 Conclusion: Are There Secrets of Growth?
      • APPENDIX TO CHAPTER 11:General Functional Forms and the Production Function
    • CHAPTER 12 The Big Questions of Economic Growth
      • 12-1 Answering the Big Questions
      • 12-2 The Standard of Living and Concepts of Productivity
      • 12-3 The Failure of Convergence
      • 12-4 Human Capital and Technology
      • 12-5 Political Capital, Infrastructure, and Geography
      • International Perspective: A Symptom of Poverty: Urban Slums in the Poor Cities
      • International Perspective: Institutions Matter: South Korea Versus North Korea
      • International Perspective: Growth Success and Failure in the Tropics
      • 12-6 CASE STUDY: Uneven U.S. Productivity Growth Across Eras
      • Global Economic Crisis Focus: Lingering Effects of the 2007—09 Recession on Long-Term Economic Growth
      • 12-7 CASE STUDY: The Productivity Growth Contrast Between Europe and the United States
      • 12-8 Conclusion on the Great Questions of Growth
    • CHAPTER 13 Money, Banks, and the Federal Reserve
      • 13-1 Money as a Tool of Stabilization Policy
      • 13-2 Definitions of Money
      • 13-3 High-Powered Money and Determinants of the Money Supply
      • 13-4 The Fed’s Three Tools for Changing the Money Supply
      • 13-5 Theories of the Demand for Money
      • International Perspective: Plastic Replaces Cash, and the Cell Phone Replaces Plastic
      • 13-6 Why the Federal Reserve “Sets” Interest Rates
    • CHAPTER 14 The Goals, Tools, and Rules of Monetary Policy
      • 14-1 The Central Role of Demand Shocks
      • Global Economic Crisis Focus: The Weakness of Monetary Policy After 2008 Reveals a More General Problem
      • 14-2 Stabilization Targets and Instruments in the Activists’ Paradise
      • [BOX]Rules Versus Activism in a Nutshell: The Optimism-Pessimism Grid
      • 14-3 Policy Rules
      • 14-4 Policy Pitfalls: Lags and Uncertain Multipliers
      • 14-5 CASE STUDY: Was the Fed Responsible for the Great Moderation of 1986—2007?
      • 14-6 Time Inconsistency, Credibility, and Reputation
      • 14-7 CASE STUDY: The Taylor Rule and the Changing Fed Attitude Toward Inflation and Output
      • Global Economic Crisis Focus: Taylor’s Rule Confronts the Zero Lower Bound
      • 14-8 Rules Versus Discretion: An Assessment
      • International Perspective: The Debate About the Euro
      • 14-9 CASE STUDY: Should Monetary Policy Target the Exchange Rate?
    • CHAPTER 15 The Economics of Consumption Behavior
      • 15-1 Consumption and Economic Stability
      • 15-2 CASE STUDY: Main Features of U.S. Consumption Data
      • 15-3 Background: The Conflict Between the Time-Series and Cross-Section Evidence
      • 15-4 Forward-Looking Behavior: The Permanent-Income Hypothesis
      • 15-5 Forward-Looking Behavior: The Life-Cycle Hypothesis
      • Global Economic Crisis Focus: The Modigliani Theory Helps Explain the Crisis and Recession of 2007—09
      • 15-6 Rational Expectations and Other Amendments to the Simple Forward-Looking Theories
      • Understanding the Global Economic Crisis:Did Households Spend or Save the 2008 Economic Stimulus Payments?
      • 15-7 Bequests and Uncertainty
      • International Perspective: Why Do Some Countries Save So Much?
      • 15-8 CASE STUDY: Did the Rise and Collapse of Household Assets Cause the Decline and Rise of the Household Saving Rate?
      • 15-9 Why the Official Household Saving Data Are Misleading
      • 15-10 Conclusion: Does Consumption Stabilize the Economy?
    • CHAPTER 16 The Economics of Investment Behavior
      • 16-1 Investment and Economic Stability
      • 16-2 CASE STUDY: The Historical Instability of Investment
      • 16-3 The Accelerator Hypothesis of Net Investment
      • 16-4 CASE STUDY: The Simple Accelerator and the Postwar U.S. Economy
      • 16-5 The Flexible Accelerator
      • [BOX] Tobin’s q: Does It Explain Investment Better Than the Accelerator or Neoclassical Theories?
      • 16-6 The Neoclassical Theory of Investment Behavior
      • 16-7 User Cost and the Role of Monetary and Fiscal Policy
      • 16-8 Business Confidence and Speculation
      • [BOX] Investment in the Great Depression and World War II
      • International Perspective: The Level and Variability of Investment Around the World
      • 16-9 Investment as a Source of Instability of Output and Interest Rates
      • 16-10 Conclusion: Investment as a Source of Instability 545
    • CHAPTER 17 New Classical Macro and New Keynesian Macro
      • 17-1 Introduction: Classical and Keynesian Economics, Old and New
      • 17-2 Imperfect Information and the “Fooling Model”
      • 17-3 The Lucas Model and the Policy Ineffectiveness Proposition
      • 17-4 The Real Business Cycle Model
      • 17-5 New Classical Macroeconomics: Limitations and Positive Contributions
      • International Perspective: Productivity Fluctuations in the United States and Japan
      • Global Economic Crisis Focus: The 2007—09 Crisis and the Real Business Cycle Model
      • 17-6 Essential Features of the New Keynesian Economics
      • 17-7 Why Small Nominal Rigidities Have Large Macroeconomic Effects
      • 17-8 Coordination Failures and Indexation
      • 17-9 Long-Term Labor Contracts as a Source of the Business Cycle
      • 17-10 Assessment of the New Keynesian Model
    • CHAPTER 18 Conclusion: Where We Stand
      • 18-1 The Evolution of Events and Ideas
      • Global Economic Crisis Focus: Can Economics Explain the Crisis or Does the Crisis Require New Ideas?
      • 18-2 The Reaction of Ideas to Events, 1923—47
      • 18-3 The Reaction of Ideas to Events, 1947—69
      • 18-4 The Reaction of Ideas to Events, 1970—2010
      • Global Economic Crisis Focus: Termites Were Nibbling Away at the Prosperity of 2003—07
      • 18-5 The Reaction of Ideas to Events in the World Economy
      • 18-6 Macro Mysteries: Unsettled Issues and Debates
      • International Perspective: How Does Macroeconomics Differ in the United States and Europe?

    APPENDIXES

    1. Time Series Data for the U.S. Economy: 1875—2010
    2. International Annual Time Series Data for Selected Countries: 1960—2010
    3. Data Sources and Methods

    Glossary

    Index

    Robert J. Gordon is Stanley G. Harris Professor in the Social Sciences and Professor of Economics at Northwestern University. He holds a bachelor’s degree from Harvard University, after which he attended Oxford University in England on a Marshall Scholarship. He received his PhD from the Massachusetts Institute of Technology. He taught at Harvard and the University of Chicago before moving to Northwestern in 1973, where he has taught for more than thirty years and where he was the chair of the Department of Economics from 1992 to 1996.
    Professor Gordon is one of the world’s leading experts on inflation, unemployment, and productivity growth. His recent research includes work on the rise and fall of the New Economy, the U.S. productivity growth revival, and the recent stalling of European productivity growth. He is the author of several books, more than 100 scholarly articles, and more than 60 published comments on the research of others.
    He is a research associate at the National Bureau of Economic Research (NBER), a research fellow of the Centre for Economic Policy Research in London, a Guggenheim Fellow, a fellow of the American Academy of Arts and Sciences, and a fellow of the Econometric Society.

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