In addtion to the standard issues covered in macroeconomics (growth, unemployment, inflation, etc.) I also want to address/discuss some megatrends, which are not given sufficient attention in beginning macroeconomics text books. The unfolding trends that I want to highlight on this blog include:
o The implications of the globalization process on the U.S. economy.
o The rise of China and India (Chindia).
o Relentless technological change, including information technology, biotechnology, and nanotechnology.
o A new demography.
o The possibility of “peak oil”.
These trends are giving rise to structural changes in the global economy that is making traditional macroeconomic theory and policy less relevant. Most macro text books have not come to grips with the most deep-seated change brought about by globalization: the fact that the global labor force has doubled in size in the last generation. This is not your father’s economy any more.