Macroeconomics: Theories and Episodes in the U.S.

204 Pages Posted: 9 Sep 2015

See all articles by John F. McDonald

John F. McDonald

University of Illinois at Chicago

Date Written: September 3, 2015


This is a short book for students who have taken an introductory course in macroeconomics. The book contains a chapter on each of the major competing macroeconomic theories - Keynesian, Monetarist, real business cycle, and Austrian. Then the book presents macroeconomic data on five episodes in the U.S, one chapter for each episode. These are World War I and postwar recession and recovery, the Great Depression, the period of stagflation in the 1970s, and Great Moderation of the 1980s and 1990s, and the decade of the recent financial crisis. A narrative describes the macroeconomic events for each episode, and then assesses how well the implications of each theory comport with the narrative. The final chapter presents the views of important public officials and macroeconomic forecasters who have expressed themselves clearly in book form.

Keywords: Macroeconomic theories, U.S. macroeconomy

JEL Classification: E10, E30, E52, E62

Suggested Citation

McDonald, John F., Macroeconomics: Theories and Episodes in the U.S. (September 3, 2015). Available at SSRN: or

John F. McDonald (Contact Author)

University of Illinois at Chicago ( email )

Chicago, IL 60605
United States
312-281-3287 (Phone)
312-281-3123 (Fax)

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