Employing both text and cases, the authors discuss economic issues and the impact they have on management decisions.

Part I: Introduction. The Conceptual Tools of Political Economy. Part II: Managing Monetary Policy. The Principles of Monetary Policy. The Era of High, Volatile Interest Rates. Using Monetary Policy to Induce Structural Change. The Consequences of Institutional Change in the Financial System. European Monetary Union. Part III: Managing Fiscal Policy. Principles of Keynesian Economics. The Zenith of Keynesian Economics. The Strategy of Reaganomics. The Dangers of Fiscal Policy. The Dangers of Fiscal Deficits Revisited. Selling Government Assets to Reduce Fiscal Deficits. Part IV: Managing in the International Economy. The Fixed Exchange Rate System. International Payments Imbalance. The Collapse of Fixed Exchange Rates. Management of Flexible Exchange Rates. The Origins of the Third World Debt Crisis. The Management of European Interdependence. Glossary. Index.