Book Description

Political macroeconomy refers to the interconnection between macroeconomic politics and macroeconomic performance. The expectational Phillips curve may be used to examine the economic aspects of this interrelation. Macroeconomic politics relates to voter behavior, presidential reelection ambition, partisan economic priorities, and special interests. These factors impact the fiscal and monetary policy actions of the president, Congress, and central bank. According to the electoral effect, presidents attempt to boost the economy before an election to increase reelection votes.

According to the partisan effect, conservative presidencies are relatively inflation averse, while liberal administrations are relatively unemployment averse. The evidence, however, suggests that the electoral and partisan effects occurred idiosyncratically in the U.S. economy during 1961–2016. The economy also affects presidential approval, Congressional elections, consumer sentiment, voter participation, and macropartisanship. An international dimension of the political macroeconomy is the issue of free trade versus protectionism and the perspectives of economic liberalism, neomercantilism, and structuralism.

Table of Contents

  1. Cover Page
  2. Title Page
  3. Copyright Page
  4. Contents
  5. Acknowledgments
  6. Chapter 1 The Political Macroeconomy
  7. Chapter 2 Refresher on Macroeconomic Measurements and the Business Cycle
  8. Chapter 3 Mainstream Macroeconomic Theory and the Expectational Phillips Curve
  9. Chapter 4 Fiscal and Monetary Policies
  10. Chapter 5 Voter Rationality and Macroeconomic Preferences
  11. Chapter 6 Electoral Political Business Cycle
  12. Chapter 7 Partisan Political Business Cycle
  13. Chapter 8 Evidence of Electoral and Partisan Cycles
  14. Chapter 9 Other Political Business Cycle Considerations
  15. Chapter 10 Economic Influence on Public Sentiment and Voter Behavior
  16. Chapter 11 Trade Policies and International Political Perspectives
  17. Chapter 12 Conclusion
  18. References
  19. About the Authors
  20. Index