The practical and policy applications of economic principles have always been the central focus of The Economy Today. This book has never discussed widgets or Robinson Crusoe fables. Instead, The Economy Today lives up to its title by identifying and analyzing the salient policy issues that concern Main Street, Wall Street, Capitol Hill, and other world capitals. These issues range from the Microsoft antitrust case to the dilemma of budget surpluses and the threat of global warming. Every chapter directly links basic economic principles to headline-capturing issues, enlivening student interest and enhancing the retention of learning.
This book also emphasizes the importance of the decision mechanisms we use to resolve the core issues. This is the ''markets vs. government'' debate. Should we let Adam Smith's ''invisible hand'' steer the economy, or should the government intervene to alter market outcomes? Should nations intervene to ''protect'' their currencies, or should they let the financial markets alone set international exchange rates? Rather than answering these questions, The Economy Today emphasizes the importance of decision mechanisms for our economic welfare. Right up front in Chapter 1, the potential for market failure as well as government failure is recognized. No panacea is offered, just a scientific way of thinking about how markets work and why we so often depend on them yet at other times reject them.
Part 1 Major Problems
Part 2 Cyclical Instability
Part 3 Fiscal Policy Options
Part 4 Monetary Policy Options
Part 5 Supply-Side Options
Part 6 Current Policies
Part 7 Product Markets: The Basics
Part 8 Market Structure
Part 9 Regulatory Issues
Part 10 Factor Markets: Basic Theory
Part 11 Distributional Issues
Part 12 International Economics