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:

Differentiate among a floating exchange rate, a soft peg, a hard peg, and a merged currency
Identify the tradeoffs that come with a floating exchange rate, a soft peg, a hard peg, and a merged currency

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

Identify U.S. budget deficit and surplus trends over the past five decades
Explain the differences between the U.S. federal budget, and state and local budgets

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

Explain the reason for open market operations
Evaluate reserve requirements and discount rates
Interpret and show bank activity through balance sheets

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

Explain the structure and organization of the U.S. Federal Reserve
Discuss how central banks impact monetary policy, promote financial stability, and provide banking services

By the end of this section, you will be able to:Describe microeconomicsDescribe macroeconomicsContrast monetary policy and fiscal policy

With this free video resource, students will explore the economic way of thinking, and the role incentives play in all our lives through engaging Hollywood production style videos.

Educators can use MRU's videos in a variety of ways, to include “flipping” the classroom, as study aids, supplementary material, concept reinforcement, or even as a full course offering.

In MRU's Principles of Macroeconomics course, we’ll cover fundamental questions such as: Why do some countries grow rich while others remain poor? How important is a country’s banking system — and what happened during the recent financial crisis? How did Zimbabwe end up with an inflation rate that rose into the quadrillions?

We’ll also cover important topics like the Federal Reserve, monetary policy, fiscal policy, the Solow Growth Model, institutional analysis, the “economics of ideas,” and more.

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What is Marginal Revolution University (MRU)?

Many of us can remember our first great economics teacher who fundamentally changed how we see the world. At MRU, we try and deliver that experience to millions worldwide through video.

Founded as a nonprofit in 2012 by George Mason University economics professors Tyler Cowen and Alex Tabarrok, MRU is building the world’s largest online library of free economics education videos -- currently weighing in at more than 800 videos.

This lesson focuses on contractionary monetary policy by analyzing a 1955 primary source document of a speech Federal Reserve Chair William McChesney Martin Jr. gave. In his speech, Martin made the famous analogy that in times of economic expansion the Fed should “remove the punch bowl” before the party gets out of hand. Students will develop critical thinking skills through this primary document analysis and develop data literacy skills through FRED® graph analysis.

This short video shows the impact of the COVID-19 pandemic on retail sales and employment levels.

Inflation has been on many people’s minds. There are several measures of inflation available, and each one plays a role in providing a more complete understanding of inflation’s causes and effects. This Page One Economics® Econ Primer describes key measures of inflation, including the consumer price index, and how the Federal Open Market Committee pays particular attention to these measures as it makes policy decisions—adjusting its policy stance when necessary to move the economy toward maximum employment and price stability.

Entered according to Act of Congress, in 1838 by H.R. Robinson, in the Clerk's Office of the District Court of the U.S. for the Southern District of N.Y. Printed & published by H.R. Robinson, 52 Cortlandt & 11 1/2 Wall St. N.Y.|Signed in stone: Grinnell del.|Title appears as it is written on the item.|Forms part of: American cartoon print filing series (Library of Congress)

The money multiplier has been a standard concept in introductory economics classes for decades, but changes in the way the Fed implements monetary policy has made the model obsolete. This issue provides information about the linkages between the Fed and the banking system and provides teaching suggestions.

The Van Buren administration's record, particularly with regard to the handling of public finances, is condemned as corrupt and a perpetuation of unpopular Jacksonian policies. The artist echoes perennial Whig charges of the Democrats' disregard for the Constitution and their autocratic style of governing. The nursery rhyme theme of "The House that Jack built" employed here was also used in several earlier cartoons. (See nos. 1820-1 and 1833-6.) Murrell also reproduces an earlier and somewhat similar E. W. Clay version of the "House that Jack built," probably dating from the bank wars of around 1834. Here, the "House" is Jackson's subtreasury system, represented above by a banking house interior whose floor rests on "Constitutional Currency," and whose cellar stocked with empty boxes. The scene appears in a cloud of smoke, which comes from the pipes of Andrew Jackson (on the left) and advisor and publicist Amos Kendall (on the right). Kendall's pipe also blows bubbles, symbolizing vanity or idle schemes. Nine verses from the nursery rhyme and corresponding satirical scenes appear below. 1. "This is the Malt that laid in the House that Jack built." The scene shows crates labeled "Post Office Revenue," "Public Land Sales," "Custom House," "Bonds," and "Pension Fund," suggestive of administration graft and intrigues in a cellar. 2. "This is the Rat that eat the Malt . . ." shows Van Buren's Treasury Secretary Levi Woodbury as a rat. 3. "This is the Cat that caught the Rat . . ." shows Daniel Webster as a cat toying with Woodbury. 4. "This is the Dog That worried the Cat, . . ." has Thomas Hart Benton as a dog threatening the cat Webster, who is now standing on a book "Constitution" atop a chair. 5. "This is the Cow, Whit the crumpled Horn, That tossed the Dog . . ." shows Henry Clay as a cow tossing Benton aloft. 6. "This is the Maiden all forlorn, That milked the Cow, . . ." John C. Calhoun as a milkmaid laments over a spilled bucket "Nullification" as the cow runs away with a sheet marked "Tariff." The reference is to Calhoun's role in the nullification crisis of 1832-33, and Clay's compromise tariff which temporarily resolved the conflict. 7. "This is the Man, all tattered and torn, That kissed the Maiden . . ." has Martin Van Buren in old Dutch clothing, wheeling a barrow of cabbages, saying "Here's your fine Kinderhook Early York Kabbitches." (Van Buren's home was in Kinderhook, New York.) 8. "This is the Priest all shaven and shorn, That married the Man . . ." Washington "Globe" editor Francis Preston Blair in liturgical vestment presides over the wedding of Calhoun and Van Buren, ridiculing the unlikely political alliance forged in 1840. 9. "This is the Cock of the walk, that crowed in the morn, That waked the Priest all shaven and shorn, . . ." A rooster with the head of William Henry Harrison stands on a globe "Ohio" as the sun rises behind it.|Davison lists a version of the print with the Childs address at 90 Nassau Street.|Entered . . . 1840 by John Childs.|Pub. by John Childs 119 Fulton St. New York.|Signed with monogram: EWC (Edward Williams Clay).|Title appears as it is written on the item.|Davison, no. 155.|Murrell, p. 141 (earlier version).|Weitenkampf, p. 62-63.|Forms part of: American cartoon print filing series (Library of Congress)|Published in: American political prints, 1766-1876 / Bernard F. Reilly. Boston : G.K. Hall, 1991, entry 1840-48.