Week 12/13

Principles of Macroeconomics (with Xtra!)

Info icon This preview shows pages 1–2. Sign up to view the full content.

(Mundell-FixedERates).html Fortune issue: December 20, 1999 First Principles GLOBAL ECONOMICS, PART II A Theory for an Open World By N. Gregory Mankiw To say we live in a global economy is a cliché as trite as they come. Today everyone understands that a nation has to keep an eye on its neighbors when setting economic policy. But this wasn't always so obvious. In the 1960s, U.S. imports were a mere 4% of GDP, compared with 14% now. Mainstream theories of monetary and fiscal policy mostly ignored international issues, assuming in effect that each nation was alone in the world. Columbia University economist Robert Mundell, a Canadian, knew otherwise. The analysis he developed in the 1960s won him this year's Nobel Prize in economics. More important, it remains the starting point for explaining how policy works in a global economy. In the 1930s economist John Maynard Keynes said depressions and recessions resulted when people weren't spending enough to keep everyone employed. The solution, he argued, was to goose up spending
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern