International Macroeconomics: A Modern Approach

by Stephanie Schmitt-Grohe, Martin Uribe, Michael Woodford

An essential introduction to one of the most timely and important subjects in economics

International Macroeconomics presents a rigorous and theoretically elegant treatment of real-world international macroeconomic problems, incorporating the latest economic research while maintaining a microfounded, optimizing, and dynamic general equilibrium approach. This one-of-a-kind textbook introduces a basic model and applies it to fundamental questions in international economics, including the determinants of the current account in small and large economies, processes of adjustment to shocks, the determinants of the real exchange rate, the role of fixed and flexible exchange rates in models with nominal rigidities, and interactions between monetary and fiscal policy. The book confronts theoretical predictions using actual data, highlighting both the power and limits of given theories and encouraging critical thinking.

Genres: Economics

482 pages, Hardcover

Published September 6, 2022

Reviews

[Richard Marney · Rating 5 out of 5]

A ground-breaking (micro-foundations based) treatment of international macroeconomic theory, this long-awaited book is written for intermediate economics undergraduates . The text combines theory, rudimentary modeling, and real-world examples, the result of which is a highly informative survey of the topic area. Each chapter ends with review questions, helpful in reinforcing key learnings and extending one’s knowledge.

The only criticism is the university text book price, which may scare off readers.

[Pann · Rating 4 out of 5]

A good book. It provides an intuitive understanding of the world economy. Anyone who has graduated high school and want a touch of international macroeconomics would probably enjoy this. But the chapters are quite long, very long as it gets towards the end.

[J · Rating 2 out of 5]

This book has caused much suffering this semester.

[Patrick Lu 嘉泺 · Rating 4 out of 5]

The book covers every topic in international macro in full logical and mathematical depth. Many chapters could prove challenging for the typical lower undergrad, as this could be used for graduate study as well. My professor happened to be one of their students and we ended up covering 9 chapters out of the current 17 released by the end of the semester. The book takes abstraction in macroeconomics to a new level whilst extending upon them to a broader margin. I recommend this book to anyone interested in the more technical side of exchange rates, consumption-smoothing, current accounts and trade balances, interest-rate parities etc.