TITLE : MACROECONOMICS. 3RD ED.*

Preface

The rapidly changing American economic experiences and burgeoning ideas and research presented during the last few years have expanded the material that might be covered in macroeconomic theory and policy courses and reviewed by graduate students preparing for their theory exams. The purpose of this third edition is to present a straightforward, thorough, and up-to-date explanation of macro analysis in a rigorous and concise manner that will maximize each reader's exposure to the essence of the field.

The development of the third edition of Macroeconomics was encouraged by the very pleasant acceptance of the first and second editions and the many communications and suggestions that came from throughout the world as a result of its translation into other languages. This edition is substantially refined and expanded as a result of those communications and the additional literature that has come forth since the completion of the second edition. Particularly important additions are the new theories related to inflation, unemployment, and the money supply that have been suggested by the recent American economic experience.

The basic nature of the book remains unchanged, although some sections and chapters have been relocated. The first half of this edition describes the basic tenets of macroeconomic theory and presents a comprehensive macroeconomic model. Then the model is used to analyze and explain such macroeconomic problems as inflation, unemployment, growth, income fluctuations, and income distribution. Third, there is an examination of both the requirements of income and price stabilization and the monetary, fiscal, and other policies that might be implemented for stabilization purposes. Finally, macroeconomics is put into historical perspective as the macroeconomic postulates of the classical economist are presented and evaluated.

This edition has been expanded to include a number of footnotes within each chapter in addition to the list of general references at the end of each chapter. The reader should examine at least some of these selections if only to become aware of the nature of formal economics presentations and to discover that there are aspects of macroeconomics more complex than those described in the text.

Numerous colleagues around the world have influenced the new edition. I am particularly indebted to Kenneth Wieand of Marquette University and Procter Thomson of Claremont Men's College, whose careful, constructive criticisms have broadened the approach of the new edition. Comments and suggestions of my students at Claremont Men's College, the Claremont Graduate School, and the University of Sussex have also been invaluable. Not least, I am indebted to Molly Ross and Edna Vaughn, who typed and retyped patiently and graciously.

JOHN LINDAUER Murray State University Murray, Kentucky