Table of Content
New! Chapter 20, The Financial System: Opportunities and Dangers gives students a deeper look at the linkages between the financial system and the broader economy, using recent events as a context for exploring the causes and effects of financial crises, as well as policies aimed at dealing with crises and preventing future ones. New Canadian Examples and Research Throughout, including: A new FYI box on the growing gap between rich and poor (Ch. 3, National Income) New references to the Billion Prices Project which uses data found on the internet to monitor inflation trends, and to youth unemployment issues: comparing youth unemployment rates in Europe and Canada, and assessing the effect on lifetime income of entering the labour market during a recession. (Ch. 3, National Income and Ch. 6, The Open Economy) Case Study on the origins of modern institutions now contains a useful reference to the Canadian Centre for the Study of Living Standards--an interview with Daron Acemoglu and James Robinson. (Ch. 8, Economic Growth I) Case Study on stabilization policy has been modified to assess the credibility of the multiplier estimate that was widely used in the fiscal stimulus debates. (Ch. 11, Aggregate Demand I) An updating of the extended Case Study on deficit and debt reduction, and new material on the Dutch disease. (Ch. 16, Consumption) New material on recent monetary policies: quantitative easing in the United States and forward guidance (promises by the central bank to keep future interest rates low for a prolonged period) in Canada. (Ch. 19, Government Debt and Budget Deficits) Detailed treatment of risk aversion, asymmetric information and moral hazard. (Ch. 20, The Financial System) FYI boxes on yield spreads and contingent convertible debt. (Ch. 20, The Financial System) Case Studies on Yunus's creation of microfinance, the European sovereign debt crises, Minsky's prediction that the financial crisis was certain to happen, and the fiscal challenges facing provincial governments concerning health care costs and the aging population. (Ch. 20, The Financial System)
