Macro: The Economic Models That Shape Our World

Discussions about interest rates, debt or inflation sound mystifying. Much of what we hear about macroeconomics–from politicians, pundits or even professors–bears little resemblance to how economists think about policy and to people’s actual experiences. Macro bridges that gap. In clear and engaging prose, Chicago economist Greg Kaplan demystifies how our everyday behaviour, including how we spend and save, connects to the biggest questions in fiscal policy. Tracing the evolution of modern macroeconomics from Keynes to today, he guides readers through the models often used to explain our economy, uncovering their flaws and revealing what they tell us about managing the economy in good times and bad. The journey culminates in HANK, a macroeconomic model co-created by Kaplan that is more consistent with reality. Macro offers a timely, new framework for understanding and shaping economics in the real world.