To the Student
Professors of economics commonly observe that their students are able to master
macroeconomic concepts when those concepts are discussed in purely formal
terms， but that they have trouble applying their new knowledge to an
understanding of current economic events. The purpose of this Casebook is to help
you develop your ability to apply the concepts and models you are learning to real-
world issues. This skill will broaden your understanding during the course and
give you insights into current events beyond the course.
The Casebook contains twenty-seven recent articles about macroeconomic
issues drawn from The Economist， The Wall Street Journal， The Washington Post，
and The New York Times. Each article raises issues that you can analyze using
the models in the corresponding chapter of N. Gregory Mankiw s Macroeconomics.
The articles concern noteworthy current events， many of which will still be under
discussion when you use this Casebook. However， even those that become less
topical will still provide valuable opportunities to analyze real-world issues using
the tools of macroeconomics.
Each case begins with a short Introduction that places the article in the
context of the textbook chapter. Following the article， an Analysis section dis-
cusses the issues presented in the article， with an emphasis on those that relate
directly to the textbook material. Finally， there are two sets of questions. The first
set， Questions for Review， checks whether you have understood the article s key
points. The second set， Discussion Questions， probes more deeply by asking you to
use material from the Mankiw book to think about issues raised in the article that
have not been addressed in the Analysis section of the case.
I am indebted to a number of people who aided in the development and
production of this Casebook. Paul Shensa at Worth Publishers encouraged me to
write the Casebook and gave me valuable advice on its structure， and Timothy
Prairie did a terrific job turning my manuscript into this book. David Weil of
Brown University， Samuel Kortum of Boston University， and Andrew John of
Michigan State University read early drafts and suggested a number of improve-
ments. Ranya Dajani was invaluable in helping to locate good cases， as well as in
proofreading the final manuscript. Most importantly， Greg Mankiw inspired me to
do this Casebook by writing an outstanding textbook， and he suggested innum-
erable improvements to early drafts.
Jeffrey A. Miron
June 1992
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