Intermediate Macro Texts and the Economic Crisis of 2008-09

Abstract The authors use quantitative and qualitative analyses to examine how well 12 leading intermediate macroeconomic textbooks would have prepared students for understanding the economic crisis and stabilisation policies implemented in 2008-09. Evaluations distinguish between topical coverage of relevant concepts and theoretical underpinnings of interventionist policy. The authors find heavy emphasis on content associated with macro stability but significantly less content that would have been useful in comprehending informed public warnings about instability and the interventionist policies that were actually implemented. Examples from the texts are offered to support their analyses. While not objecting to thorough treatment of arguments related to macro stability, the authors suggest students would be better served by texts that integrate more serious coverage of crises, potential causes, and policy responses.