21st Century Perspectives on Macroeconomics

In this chapter, Professor Jeffrey Sachs provides an overview of different perspectives on macroeconomics. First, the interdependence and openness characteristics of a macroeconomy are a core feature of macroeconomic reality, esepcially as we live in a globalized world. Second, we spend a great deal of time comparing the institutional environment of an economy, as we think that it helps to explain differences of macroeconomic performance. A third feature is a focus on the structure of the economy and its sectors. A fourth is called clinical economics, or applying differential diagnoses to macroeconomies by differentiating between conditions that share different symptoms. A fifth perspective is that all economies are mixed economies. The sixth perspective is always looking at the role of the government as a macroeconomic problem solver. A seventh perspective is that 21st century macroeconomists must keep an eye on natural capital and the role of nature. And the eighth perspective is the role of technology in the macroeconomy.

This video is licensed under the CC BY-NC-SA license.