Cambridge International AS & A Level Economics Coursebook
Written for English students. Explanations are partial. Textbook is sprinkled with errors. One only hopes the instructor is lucid enough to catch them. Text’s accenting exchange-rates and trade fits the greatly trade-dependent UK.
The macroeconomics part is the standard catechism which one must take on faith. Macro’s faulty explanations do not enable prediction, but after an event, macro- is ever ready. If this macro-explanation does not work, some other macro-explanation will. Not much of a science is it (macro)? With facts at hand one can use micro- to predict a short way ahead.
Not much consolation, but if a candle is all one has in a vast dark space, better to take advantage of its limited use than to give up. \
Venerable genius J M Keynes, truly a wizard, intimidated none other than Bertrand Russell and could make nearly anyone else feel at once inferior. Keynes propounded macro- as a offering possible clues on reviving an economy whose markets were in coma or on ways to keep them from lapsing into coma. He keenly knew markets are unstable and do not automatically return to equilibrium. He propounded macro-, without laying it down, a la mode mosaique, as law. His solutions were statist, because being in England’s intellectual and power elite (then the former were usually in the latter, but not always the other way around). If raised in the good, ol’ USA, he might have seen things differently. His key was contribution markets are inherently unstable and their return to equilibrium after overstimulation or shock is wishful thinking. So carefully discourage their spinning out of control.