Introduction and Overview

Abstract

In recent times, authors of macroeconomics texts have faced a series of daunting challenges. The primary challenge lies in the very nature of the subject. Monetary and fiscal policies influence wages, employment, inflation, output, interest rates, and exchange rates and affect virtually all individuals in emerging as well as in developed economies. The applicability and pervasiveness of macroeconomics have never been in doubt. In fact, it is these very aspects that pose the major challenges to authors of texts pertaining to the analysis of monetary and fiscal policies.