Modern Financial Macroeconomics

This one-of-a-kind text examines the role that financial markets and institutions play in modern macroeconomics. Traditional economics downplays the function of financial systems in macroeconomic thought. This timely text examines the role that financial markets and institutions play in modern macroeconomics. Over the last couple of decades there has been a fair amount of research on microeconomic models of market failure and the impact of such failures on business cycles and other macroeconomic phenomena. Recessions and depressions are examined afresh in detail. Financial panics and meltdowns like the currency crashes of the 1990s are examined for macroeconomic impact and recoveries. Last but not least, the current Bush Crash of 07-08 is discussed as it has unfolded, including the bank run and demise of the Northern Rock bank in the UK. The inexpensive paperback version can be used as a supplement to Money & Banking and Intermediate Macro courses, since the text assumes knowledge of only simple macroeconomic/microeconomic principles. Modern Financial Macroeconomics takes a non-technical approach in examining the role that financial markets and institutions play in shaping outcomes in the modern macro economy. Reviews historical and contemporary macroeconomic theory Examines governmental influence on moderating (or exacerbating) economic fluctuations Discusses both empirical and theoretical links between financial systems and economic performance, as well as case studies detailing the role of finance in specific business cycle episodes