CHAPTER: FIVE DEBATES OVER MACROECONOMIC …



CHAPTER: FIVE DEBATES OVER MACROECONOMIC POLICY

I enjoyed writing this last chapter, but I understand that some students may leave the course feeling that some important questions are unanswered or that issues are unresolved. This can be disconcerting.

Keep in mind, that even though economists still debate the issues discussed in this chapter, there are many things that economists agree on.

Most economists believe that a country is better off, overall, under free trade than with tariffs. Most believe that rent control lowers the quantity and quality of housing. And regardless of where they stand on the stabilization debate, most economists agree that monetary and fiscal policy can stimulate an economy suffering from high unemployment and excess capacity.

Most important, there is a widespread consensus among economists that the ten principles of economics introduced in chapter 1 are a useful way to understand the world.

I wish I could have written a book that answered all of your questions. But that really wasn’t the goal. What I hope you’ll take with you from your economics course is a new perspective on how the world works, so you’ll be better prepared to thrive in it.

From your studies, or from just watching the evening news, you know that much of what happens in the world involves the economy. Wars. Elections. Poverty. The stock market. College tuition. The Internet. The environment. The rent you pay, the wages you earn, the price of U2 tickets. Just about everything is affected by the economy---or affects the economy---or both.

What you’ve learned in your economics course will help you better understand the world in which we live. It empowers you to evaluate the things politicians say, so you can be a better-informed voter. It helps you understand the forces that will affect you as a consumer, a worker, or a businessperson.

And maybe my motivation for ending the book with the five debates was a bit selfish:

By getting you up to speed on the big questions that we economists are struggling with,

perhaps you’ll be able to help us figure out the answers.

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download