Principles of Macroeconomics

The book is meant for BA, BSc, BCom, BBA, MBA, and all professional courses offering macroeconomics. The subject of macroeconomics has assumed growing importance in the past couple of years due to global recession and international crisis. We have seen what Paul Krugman calls 'the return of depression economics. Now all countries of the world hang together. Earlier it was said that when America sneezes the rest of the world catches cold. Now we find financial contagion. Any financial crisis, anywhere in the world, gets transmitted to the rest of the world in no time due to greater capital mobility and integration of the world's capital markets. It is against this backdrop that we have written this book with a completely new focus. The focus is on various international linkages. This book covers all current topics, including the global economy and the financial system.
All the theories, models, and hypotheses have been tested in the light of facts and figures. All these make the title more purposive.
The current financial crisis has found the financial institutions at the centre of the action. This is why there is detailed discussion of the financial system in this title, with particular reference to the market for loanable funds and capital flows across national borders.