Topics change from year to year. Most recent topics include: optimal fiscal and monetary policy; optimal capital taxation; time inconsistency and incentive incompatibility of optimal policies; redistribution and political economics; heterogeneous agents and incomplete markets; Real Business Cycle models and new-keynesian models; endogenous growth; aggregate fluctuations and propagation mechanisms; recursive methods and robust control in macro.

An introduction to current macroeconomic concerns with particular emphasis on medium-run economic fluctuations, economic crises, and the role of asset markets. Topics include the explanation of high chronic unemployment in some nations, the source of modern liquidity crises, the origin and end of speculative bubbles, and the factors that lead to substantial periods of economic stagnation.

Principles of Macroeconomics 2e covers the scope and sequence of most introductory economics courses. The text includes many current examples, which are handled in a politically equitable way. The outcome is a balanced approach to the theory and application of economics concepts. The second edition has been thoroughly revised to increase clarity, update data and current event impacts, and incorporate the feedback from many reviewers and adopters.Changes made in Principles of Macroeconomics 2e are described in the preface and the transition guide to help instructors transition to the second edition.

By the end of this section, you will be able to:

Contrast M1 money supply and M2 money supply
Classify monies as M1 money supply or M2 money supply