Macro: The Economic Models That Shape Our World

An inviting tour of modern macroeconomics―culminating in HANK, a modern framework that will transform the way we understand our economy and the policies that shape it.If discussions about interest rates, debt, or inflation sound like economic sorcery, you’re not alone. 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 behavior, including how we spend and save, connects to the biggest questions in fiscal and monetary policy. Tracing the evolution of modern macroeconomics from Keynes to today, he guides readers through the models that are often used to explain our economy, uncovers their flaws, and reveals what cutting-edge research tells 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. Read more