Introduction to Macroeconomics

Edited by Louis-Philippe Rochon, Full Professor, Laurentian University, Canada, Editor-in-Chief, Review of Political Economy, Editor-in-Chief, Challenge, Founding Editor Emeritus, Review of Keynesian Economics and Director, Monetary Policy Institute and Sergio Rossi, Full Professor of Economics, University of Fribourg, Switzerland

• Contents:Introduction: the urgent need for a heterodox approach toeconomic analysis 1Louis-Philippe Rochon and Sergio RossiPART I ECONOMICS, ECONOMIC ANALYSIS ANDECONOMIC SYSTEMS1 What is economics? 25Louis-Philippe Rochon and Sergio Rossi2 The state of macroeconomics 51Louis-Philippe Rochon and Sergio Rossi3 The history of economic theories 80Heinrich Bortis4 Monetary economies of production 122Louis-Philippe RochonPART II MONEY, BANKS AND FINANCIAL ACTIVITIES5 Money and banking 151Marc Lavoie and Mario Seccareccia6 The financial system 176Jan Toporowski7 Central banking and monetary policy 200Louis-Philippe Rochon and Sergio RossiPART III THE MACROECONOMICS OF THE SHORT ANDLONG RUN8 Theories of consumption 233Stavros A. Drakopoulos9 Theories of investment 268Thomas Dallery10 Aggregate demand 307Jesper Jespersen11 Inflation and unemployment 331Alvaro Cencini and Sergio Rossi12 The role of fiscal policy 355Malcolm Sawyer13 Economic growth and development 376Mark Setterfield14 Wealth distribution 402Omar HamoudaPART IV INTERNATIONAL ECONOMY15 International trade and development 437Robert A. Blecker16 Balance-of-payments constrained growth 469John McCombie and Nat Tharnpanich17 European monetary union 494Sergio RossiPART V RECENT TRENDS18 Financialization 517Gerald A. Epstein19 Imbalances and crises 540Robert Guttmann20 Sustainable development 566Richard P.F. Holt21 Conclusion: do we need microfoundations for macroeconomics? 593John KingAnswers 618Index 633

‘This book is a comprehensive textbook of macroeconomics that can be easily regarded as one of the top scholarly contributions made in recent years to introduce readers to the realm of political economy. Contributors include among the best Keynesian economists and historians of economic thought. This book pushes the frontier of knowledge and its reading seems to be a required step for the inquisitive reader.’