Macroeconomics

The Development of Modern Methods for Policy Analysis

William Scarth, formerly Professor of Economics, McMaster University, Canada

This important textbook offers a comprehensive look into the two main traditions in contemporary macroeconomics – New Classical and Keynesian – and examines the work of economists who have drawn on principles from both traditions to form a new, integrated approach known as New Neoclassical Synthesis. Importantly, this provides the theoretical foundation for much of current mainstream economics and the work done by central banks around the world. With a dual focus on research methods and policy applications, this book bridges the gap between intermediate macroeconomic and advanced graduate-level texts, making it an ideal resource for senior undergraduate and Masters students in applied economics programs.

‘This is an excellent book, actually the book, for the beginning graduate student who wants to keep up with the often confusing journal literature and the twists and turns of the intellectual debate. Now into a fourth edition, the “Scarth Express”, as we used to say circa 1975, is still going strong. This was a reference to the speed at which the material was delivered, in class, on a blackboard. No such problems for the reader of this volume.’
– John Smithin, York University, Canada

‘Most introductions to modern macroeconomics are quite technical, teaching advanced research methods. Others are more general, focusing instead on historical perspective and the major differences between several approaches, and so avoiding detailed derivations. Scarth’s book accomplishes both of these objectives, while maintaining the reader's interest with a strong emphasis on applied policy questions.’
– Richard Lipsey, Simon Fraser University, Canada