Contents

Preface

Acknowledgement

Part I The Equilibrium Principle: A Natural Dynamic State

Chapter 1 What Happens There Matters Here

Chapter 2 It’s the Global Economy

Chapter 3 Politics and the Economy

Part II GDP and Consumption

Chapter 4 GDP: The Perfectly Imperfect Measurement

Chapter 5 Consumers and Consumption: Follow the Money

Chapter 6 Shifting Sands: Consumers Prefer Services

Chapter 7 Great Expectations

Chapter 8 Saving and Investing: Equilibrium at Work

Chapter 9 Real Estate: Is It Still Location, Location, Location?

Chapter 10 Lighten Up: Capital Expenditure and Intellectual Property

Chapter 11 Inventories: The Buffer Between Production and Consumption

Chapter 12 State and Local Governments: Where Spending Gets Done

Chapter 13 Stabilization and Procyclicality: How Governments Balance Spending With Taxes

Chapter 14 Federal Spending: Budgets and Deficit Spending

Chapter 15 Jimmy Stewart, Oz, and the Road to a Federal Reserve

Chapter 16 The Stop Sign (or Toll Booth) at the Border: Trade and Tariffs

Chapter 17 The Compensation Principle: Should We Pay the Losers?

Chapter 18 Domestic Imbalance: A Role for Trade Balances

Chapter 19 As the World Turns

Part III The Economy and You

Chapter 20 COVID-19: How the Pandemic Changed Business

Chapter 21 Climate Change: “Is It Hot in Here or Is It Me?” (Joan of Arc)

Chapter 22 Health Care Costs: A Steady Climb

Chapter 23 First Fridays: Monthly Job Reports

Chapter 24 A Shrinking Workforce: Jobs and Work in the Twenty-First Century

Chapter 25 Wages: Minimum and More

Chapter 26 Measuring Prices: How Much Is a Dollar?

Chapter 27 Productivity and Wages: What We Make for What We Earn

Chapter 28 Money Illusion: The Distinction Between Income and Buying Power

Chapter 29 Baumol Cost Disease: The Relationship Between Wages and Productivity

Chapter 30 Exchange Rates and Purchasing Power

Chapter 31 The Fed’s Job: A Stable Economy

Chapter 32 What the Financial Markets Reveal

Chapter 33 The Yield Curve: What Is It Saying?

Chapter 34 The Dollar Versus Everything Else

Chapter 35 Buy Low, Sell High: Efficient Markets

Chapter 36 An Expert Wife’s Advice

Epilogue

Glossary of Terms

About the Authors

Index

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