Macroeconomics

When I first read the reviews of this book I (also) was puzzled by the great divergence of opinion expressed among some reviewers. After purchasing it (on the recommendation of a professor of economics at UCSC)I found it to be quite a good and relatively clear introduction to macroeconomics. This is from someone who finds many of the economic explanations on Wikipedia quite baffling. However I have a theory about the cause of the difference of opinion expressed by the reviewers: Although the book claims to only require algebra for understanding the math, I believe that a good familiarity with calculus is very helpful in interpreting much of the mathematical explanation of macroeconomics. This is NOT because the book uses the obvious language of calculus ("derivatives" and "integrals"), but rather because it extensively uses the language of functions--and calculus is generally the first math course that more extensively exercises one's thinking about functions. Macroeconomics is not just about "solving equations", it is about understanding functions and how they interact with each other. Although you could grope through this book without familiarity with calculus I think that my background of calculus helped a lot in making it easier to digest many of the mathematical explanations. Nevertheless many of his other non mathematical explanations in the earlier part of the book should reward even those without such a background. I thought that is explanations on many topics was quite clear and complete.

I took Professor Olney's Intermediate Macro class in Berkeley. We used the 1/e of the textbook along with her study guide. Despite the fact that the first edition was filled with typos and mathematical errors (which have been fixed in the 2/e), the intuition, the explanations, and the graphs were clear. But what truly separates this textbook from every other intermediate macro textbook is the MPRF-PC model that replaces the AD-AS model that you find in most textbooks. There are several major flaws in the AD-AS model. First, it uses the price level as the adjustment mechanism to equilibrium output. Second, the AD curve assumes a money supply target. In the United States and in industrialized world, the key variable to emphasize is the inflation rate and NOT the price level. In addition, the Fed uses an interest rate target and NOT a money supply target. Delong and Olney's book eliminates the silly assumptions that made sense to use 20 years ago, and uses more realistic assumptions to model a complex economy like the United States. There is no other intermediate macro textbook in the market that teaches the Monetary Policy Reaction Function and Phillips Curve model as clearly as Delong and Olney. Period.

This is an excellent intermediate Macro textbook, and the writing style is more acessible than one usually encounters at this level of economics. The theory is up-to-date and couched in less political dogma than similar products from other sources. This is not an introduction to Macro! This is a first-term MBA or intermediate BA/BS course! Given the lower quality of the competing texts I have read, I put down most low reviews to sight-unseen grousing by partisans who wish to inflict monetary loss on Professor DeLong for his political views. In todays political climate this is unsurprising, but it is quite disturbing that it has reached this far into solid science.

I'm a little baffled at the complaints leveled at DeLong's macroeconomics textbook. Though I wouldn't recommend it as an introductory textbook, as an intermediate level text, I found it quite impressive (Berkeley compacts intro. micro and macro in a one semester course, then mandates seperate intermediate micro and macro courses for majors). DeLong's writing is lively and engaging, a breath of fresh air when compared to the mechanical breakdown and prose of most economics books. More than that, however, its explanation of macroeconomic concepts is clear. I haven't come across a better econ textbook yet.

Brad DeLong's well-written intermediate macroeconomics is not-too-traditional yet lovely done. It's a nice book with some unusual features: "For example, DeLong focuses on the interest rate rather than the AS/AD diagram and he includes expanded coverage of the crucial topic of long-run growth." In addition to presenting the material with rich international and historical perspectives, DeLong also did an excellent job in explaining complicated theories and subtle concepts with care and clarity. I hope that the author will also complete the microeconomics part of a comprehensive "Intermediate Economics" text.