The only introductory economics text to equip students to address today's pressing problems by mastering the conceptual and quantitative tools of contemporary economics.

OUP has partnered with the international collaborative project of CORE researchers and teachers to bring students a book and learning system that complements and enhances CORE's open-access online e-book.

The Economy:

• is a new approach that integrates recent developments in economics including contract theory, strategic interaction, behavioural economics and financial instability

• Engages with issues students of economics care about, exploring inequality, climate change, economic instability, wealth creation and innovation, among other issues.

• provides a unified treatment of micro- and macroeconomics

• motivates all models and concepts by evidence and real-world applications

• uses interactive student-paced model-building

• has been adopted as the standard principles course at University College London, Sciences Po Paris and the Toulouse School of Economics

A new economics for the principles course

The Economy begins with social interactions using elementary game theory and institutions modelled as rules of the game. This provides the basis for a modern treatment of markets including price-making as well as price-taking, the exercise of power, and the importance of social norms and adjustment to disequilibria.

Introducing labour and credit markets with incomplete contracts allows a consistent treatment of aggregate employment and fluctuations without the need for ad hoc sticky price and wage assumptions. Banks create money by extending credit and a central bank seeks to implement a target inflation rate.

Growth and instability are illustrated from the Great Depression, through the post-war golden age of capitalism through to the financial crisis and ensuing uncertainties. Students acquire an understanding of the past and current evolution of the economy in its social and environmental context, equipping them to marshal evidence and articulate positions about contemporary policy issues.

Key Features of this Edition:

• Economist in Action videos by Al Roth, James Heckman, Thomas Piketty, and others give students a glimpse of what economists do and how they engage in real policy questions

• How economists learn from facts boxes introduce students to research practice including how to identify causation using experiments and other methods

• When economists disagree features engage the student with evidence and controversies

• The Read more suggestions direct the reader to resources they can consult to take their learning further

• Student-paced interactive diagrams suited to diverse learner capabilities are available within the CORE open access ebook available here - www.core-econ.org

• Multiple-choice questions (with explanations of correct and incorrect answers) allow students to self-test their understanding

• Great Economists panels showcase a range of influential thinkers who have shaped the path of economics

• Definitions explain important terms right where needed

• Einsteins provide an opportunity for readers to explore the quantitative aspects of the topics under discussion in more detail

• Online Leibniz calculus supplements provide a calculus-based course option, enhancing flexibility of use.