Macro Economic Theory is a textbook on macroeconomics written by M.L. Jhingan, a professor of economics at the University of Delhi. The book covers various topics in macroeconomics, such as national income accounting, consumption and investment functions, multiplier and accelerator effects, aggregate demand and supply, inflation and unemployment, business cycles, fiscal and monetary policies, balance of payments and exchange rates, economic growth and development, and macroeconomic models. The book is intended for undergraduate and postgraduate students of economics, as well as researchers and policy makers.
The book has 12 editions, with the latest one published in 2010 by Vrinda Publications. The book has 420 pages and is divided into 28 chapters. Each chapter contains a summary, key terms, review questions, numerical problems, and references. The book also includes appendices on mathematical methods, statistical methods, and econometric methods. The book is written in a clear and concise style, with diagrams and tables to illustrate the concepts. The book also provides relevant examples and case studies from Indian and international contexts.
The book is one of the most popular and widely used textbooks on macroeconomics in India. It has received positive reviews from students and teachers for its comprehensive coverage, analytical rigor, and updated content. The book is also suitable for self-study and reference purposes. The book can be downloaded for free online from various websites[^2^] [^3^] [^4^], or purchased from online or offline bookstores.
Looking ahead, the global economic outlook for 2021 is mixed and uncertain. While the availability and distribution of COVID-19 vaccines offer hope for a recovery, the emergence of new variants and the uneven pace of vaccination across countries pose significant challenges. Moreover, the pandemic has left lasting scars on many economies, such as increased debt, poverty, inequality, and informality. The policy responses to these challenges will shape the prospects for growth and development in the post-pandemic era.
According to a survey by KPMG[^1^], the advanced western economies are expected to see a big uplift in growth in 2021, as the roll out of a COVID-19 vaccine should allow the gradual conclusion of social distancing and a return to some form of normality. However, there are also risks of divergence and instability among different regions and sectors. The Eurozone could face a growing gap between export-oriented economies and those dependent on tourism and hospitality. The US could benefit from greater government spending and public investment, but also face higher inflation and interest rates. The UK could see a boost from an early vaccine roll-out, but also suffer from the impact of Brexit.
In contrast to the advanced economies, most developing economies are expected to suffer substantial setbacks to output and investment from the pandemic[^2^]. According to a report by the World Bank[^2^], pervasive informality in developing economies may be holding back recovery from the deep recessions caused by COVID-19. Informality reduces tax revenues, limits access to social protection and health care, and hampers productivity and innovation. The report calls for policies that support formalization, such as improving governance, enhancing digital infrastructure, expanding financial inclusion, and strengthening social safety nets.
Another major challenge for developing economies is debt sustainability. The pandemic has increased public debt levels to record highs in many countries, raising concerns about debt distress and default. The World Bank[^2^] estimates that 35 low-income countries are at high risk of debt distress or already in distress as of October 2021. To address this challenge, the G20 has launched the Debt Service Suspension Initiative (DSSI) and the Common Framework for Debt Treatments beyond the DSSI. These initiatives aim to provide temporary debt relief and facilitate debt restructuring for eligible countries. However, their implementation has been slow and uneven, and more efforts are needed to ensure broad participation by all creditors.
Trade is another engine of growth that has been disrupted by the pandemic. According to a report by McKinsey[^3^], global trade volumes declined by 9 percent in 2020, but recovered faster than expected in the second half of the year. The report projects that trade volumes will grow by 8 percent in 2021 and 6 percent in 2022, reaching pre-pandemic levels by mid-2021. However, the recovery will be uneven across regions and sectors, depending on factors such as vaccine availability, consumer demand, supply chain resilience, trade policy uncertainty, and digital transformation.
In conclusion, macroeconomic theory can help us understand the complex dynamics and interdependencies of the global economy in the wake of the pandemic. It can also help us design appropriate policies and strategies to foster a sustainable and inclusive recovery. However, macroeconomic theory alone is not sufficient. We also need effective coordination and cooperation among governments, businesses, civil society, and international organizations to address the common challenges and opportunities that we face in this unprecedented time. 0efd9a6b88