The 3rd Canadian edition represents a revision focused on updating data and examples throughout the text.

Boxed Features

• 1. Focus boxes-expand on a point made in the text.
• 2. In Depth boxes-look at a particular macroeconomic event in detail.
• 3. Global Macro boxes-profile macroeconomic events from around the world.

New To This Edition

• Excel Models added to Text enrichment site: Available now on instructor central!
• http://www.pearsoned.ca/text/blanchard
  • The excel spreadsheets offers students another way to learn macroeconomic concepts by giving them a lot of visuals in the graph sections. Students can also make calculations quickly.
  • The excel spreadsheets also show the CLEAR LINKS ACROSS TIME PERIODS IN DYNAMIC ANALYSIS
  • There are excel spreadsheets for the majority of the chapters in the book (they are not referenced in the chapter, only in the preface)
• For chapters 2,3,4,5,6,7,8,10,11,12,13,15,16,18,19,20,23,27
  • They can be used as assignments or in class for demonstration purposes
  • The Excel spreadsheets come with assignment questions based on the excel sheets (with answers for faculty)
  • This is also GREAT TOOL for facutly TO MAKE UP TESTS BY ALTERING THE SPREADSHEET
  • WLU author: David Johnson has already been using these in his class and has received positive student feedback.
• On this site there is also a paragraph from the author that explains why profs should use excel to help teach intermediate macroeconomics.
• Content Changes
  • Dropped the former Chapter 24, "Pathologies III: Transition in Eastern Europe and the Asian Crisis".
  • In Chapter 5, added a new box on the U.S. recession of 2001.
  • In Chapter 6, included an update on the significant appreciation of the Canadian dollar since 2000.
  • In Chapter 9,
• Updated section on equilibrium real wages, employment, and unemployment.
• Material on wage- and price-setting relations vs. labour supply added as an appendix.
  • In Chapter 10,
• Added a new paragraph to the In Depth box entitled "How Long Lasting Are the Real Effects of Money?"
• Added a new Global Macro box entitled "Why Was There 'No' Oil Shock in the Period from 2000-2005?"
  • In Chapter 11, added a new section on deflation and the Phillips curve relation.
  • In Chapter 12, added a new Focus box entitled "Okun's Law Across Countries".
  • In Chapter 13,
• Updated the Focus box entitled "The Euro: A Short History".
• Added a new Focus box entitled "Argentina's Currency Board"
• Added a new end-of-chapter problem on the pressure of China to revalue during 2005.
  • In Chapter 14, added a new Focus box entitled "Growth and Happiness"
  • In Chapter 15, added an appendix entitled "The Cobb-Douglas Production Function and the Steady State".
  • In Chapter 16,
• Added a new Focus box entitled "The New Economy and Productivity Growth".
• Added a new section on "Institutions and Growth".
• Added a new Focus box entitled "The Importance of Institutions: North and South Korea".
  • In Chapter 19,
• Added a new section on the stockmarket.
• Added a new appendix on real exchange rate.
  • In Chapter 22,
• Deleted the material on "Unemployment in Europe in the 1990s".
• Added a large new section on "Disinflation, Deflation, and the Liquidity Trap".
  • In Chapter 24 (formerly Chapter 25), added a new Focus box entitled "The Growth and Stability Pact: A Short History".
  • In Chapter 25 (formerly Chapter 26), expanded coverage of "The Optimal Rate of Inflation: The Canadian Debate".
  • In Chapter 26 (formerly Chapter 27), added a large new section entitled "Fiscal Policy in a Minority Government".