Macroeconomics examines changes in the economy of a nation or region from a broad viewpoint. Data on production, unemployment, inflation, consumption, investment, trade, and other facets of domestic and global economic life are gathered. When deciding on matters like taxes and the public budget, monetary and exchange rate policies, and trade policies—all of which have an impact on how people and businesses make decisions—policymakers rely on the understanding of macroeconomists. This volume of the MIT Press Essential Knowledge series provides a basic introduction to macroeconomics for non-economists. Readers will acquire the skills necessary to analyze economic events like the 2008 financial crisis, the ensuing euro crisis, and the present dynamics of protectionism being observed in some industrialized nations.
The author, a two-time Chilean Finance Minister and academic economist, spend a significant amount of his work explaining why some nations experience ongoing economic progress while others experience stagnation. Among the topics he covers are the relationships between economic activity and employment, employment and unemployment rates, the drivers of economic growth, the monetary, inflationary, and exchange rate systems, fiscal deficits, balance of payment crises, consumption and saving patterns, investment choices, fiscal policy, and the process of globalization and its macroeconomic effects.