#ReadThis @PrincetonUPress International Macroeconomics: A Modern Approach Stephanie Schmitt-Grohé, Martín Uribe, and Michael Woodford
Economics is exciting! And if you don't think so yet, maybe you haven't been exposed to the right content. Written by three Columbia University professors (of course the only Ivy in Manhattan), International Macroeconomics: A Modern Approach offers an excellent overview of the macro world today and the interconnectivity of its participants.
A new work published by Princeton University Press, this is well-organized into four parts:
Determinants of the Current Account
The Real Exchange Rate
International Capital Mobility
and
Monetary Policy and Exchange Rates
You'll discover the real meaning behind trade imbalances, debtor vs creditor nation states, tariffs, interest rates and more. Graphs illustrate the concepts well while beaucoup de math demonstrates higher-level concepts. We particularly found the Made in USA hypothesis interesting (p. 152-153): financial innovation in the USA induced low savings rates and overinvestment in residential housing.
Though this is clearly written at an accomplished level, it is reachable to everyone. You'll learn The Big Mac real exchange rate! If you think you know it all since you've already studied this, consider this is a new book with updated scenarios that are applicable to life today and a brush-up and reinvented method of looking at age-old concepts is terrific. Chapter 15 is on inflationary finance and what could be more timely now! You don't have to understand all of it, but it's undoubtedly a source of learning for many and a nice balance to your pile of novels and magazines. Time to use a different part of your brain!
This provides an excellent survey of the macroeconomic environment and the intricacies of its moving parts applied to a global interconnected era of today. If you haven't studied these concepts yet, open your mind, open this book and be a more fascinating, knowledgeable contributor to cocktail party conversation...and more!
Economics matters. Not only should you be financially literate, but also you should be economically literate.
Founded in 1905, Princeton University Press is a nonprofit publisher with close connections to Princeton University. The Press brings influential voices and ideas to the world stage through their academic scholarship, advancing the frontiers of scholarly knowledge and promoting the human conversation.
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International Macroeconomics presents a rigorous and theoretically elegant treatment of real-world international macroeconomic problems, incorporating the latest economic research while maintaining a microfounded, optimizing, and dynamic general equilibrium approach. This one-of-a-kind textbook introduces a basic model and applies it to fundamental questions in international economics, including the determinants of the current account in small and large economies, processes of adjustment to shocks, the determinants of the real exchange rate, the role of fixed and flexible exchange rates in models with nominal rigidities, and interactions between monetary and fiscal policy. The book confronts theoretical predictions using actual data, highlighting both the power and limits of given theories and encouraging critical thinking.
Provides a rigorous and elegant treatment of fundamental questions in international macroeconomics
Brings undergraduate and master’s instruction in line with modern economic research
Follows a microfounded, optimizing, and dynamic general equilibrium approach
Addresses fundamental questions in international economics, such as the role of capital controls in the presence of financial frictions and balance-of-payments crises
Uses real-world data to test the predictions of theoretical models
Features a wealth of exercises at the end of each chapter that challenge students to hone their theoretical skills and scrutinize the empirical relevance of models
Accompanied by a website with lecture slides for every chapter
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Stephanie Schmitt-Grohé is professor of economics at Columbia University. Martín Uribe is professor of economics at Columbia and the coauthor (with Stephanie Schmitt-Grohé) of Open Economy Macroeconomics (Princeton). Michael Woodford is the John Bates Clark Professor of Political Economy at Columbia and the author of Interest and Prices: Foundations of a Theory of Monetary Policy (Princeton).
