Principles of Economics, 4th Edition (Student Edition)

A day after reading The Economist book review I bought the book. I read and studied it with so much pleasure over the next two months that I felt I was back in some of the best classes I had ever taken in undergrad and grad school. Today, as part of my work as an internal financial consultant for a major U.S. bank, I often do research projects regarding fairly esoteric economics issues. And, I often review and study specific chapters of this book to refresh my economics foundation. I gather by now you can tell I love this book. Anyone who has an interest in economics should acquire this book first as educational enjoyment, and second as an invaluable reference.


Simply put, the best economics textbook on the market   August 8, 2004
Ronald M. Cronovich (Henderson, NV)
48 out of 52 found this review helpful

UPDATE: This is the 3rd edition. The 4th edition just came out, and it is excellent. I have read every page, and will post a review as soon as I have time. But in the meantime, do not buy the 3rd edition. (I'm not sure why Amazon is still selling this now outdated edition.)

The rest of my review of the 3rd edition follows:

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For 10 years, I have taught intro-level economics courses at a university. I have used a variety of books, and read many others (to steal their best ideas and examples for my teaching!). Mankiw is the one I like best.

More importantly, Mankiw is the one my students consistently like best. I often survey students near the end of the semester about their satisfaction with different aspects of the textbook, including: clarity, brevity, real-world relevance, effective layout & use of color, quality of the diagrams, and so forth. I tell my students not to sign their survey - I want their responses to be anonymous and completely candid. I tell students "If this book doesn't work for you, PLEASE tell me so that I can use a better one for my next batch of students."

More than any other textbook I've used, Mankiw's Economics textbook gets the highest student ratings in every category.

It might also be helpful for you to know about the difficulty level of Mankiw. I would describe it as average. For comparison, I would describe the following as above average difficulty level: Stockman, Stiglitz, Baumol/Blinder, Case/Fair, and Parkin. I would describe these books as below average difficulty level: Tucker, Miller, Bade/Parkin, Boyes/Melvin, and O'Sullivan/Sheffrin. I think the difficulty level of Mankiw is roughly comparable to that of Schiller, Colander, McConnell/Brue, and McEachern.

Despite that Mankiw is merely "average" difficulty level, it maintains a fairly good degree of analytical rigor.

Also, the writing style is student-friendly (but definitely not too informal), and, unlike other textbooks, Mankiw avoids introducing a lot of terms that won't be important for anything later in the book. The layout is attractive, yet clean and uncluttered, with lots of space in the margins for students to jot notes if they wish. Students find the end-of-chapter exercises very helpful.

The most distinguishing characteristic of the macroeconomics chapters is Mankiw's innovative approach. He first covers long-run topics: What determines a country's standard of living in the long run? What is the cause of the long-run upward trend in the cost of living? Why is there unemployment when things are "normal" (i.e. not a recession)? And many others (including saving, investment, the government budget deficit, the trade balance - all things you hear about on the evening news every day).

Then, he turns to short-run issues, such as recessions and booms.

Why treat the long run first? Because it's easier to learn the short-run analysis after students have learned the long-run equilibrium around which the economy fluctuates. (Also, there is much more agreement in the profession about the long-run analysis, whereas there's a fair amount of controversy over some of the details of the short-run analysis.)

How is this approach received? Very well, as evidenced by the fact that many other textbooks have copied it AFTER Mankiw first popularized it with the first edition of his Principles book, and before that, the first edition of his excellent intermediate macroeconomics textbook.

Mankiw is a superstar in the profession - and outside of it, as well. President Bush tapped him to be the Chairperson of the President's Council of Economic Advisors, and Mankiw briefs the President once or twice every week (in addition to many other important responsibilities.)

Despite working for a Republican Administration, Mankiw presents a very balanced treatment of economics in his textbooks (and I am telling you this as a Democrat). In fact, Mankiw prefers GOOD ideas, whether Republican or Democrat. For example, he recently argued for a gas tax increase to encourage conservation, and suggested the revenue be given back to consumers in the form of an income tax cut. Mankiw clearly does not just "push the Party line." This is integrity.

The company that publishes Mankiw's Principles of Economics textbooks, Thomson/South-Western, invests a lot of resources into continually improving this book. Compared to any other textbook publisher I know, they hire more student and teacher reviewers and devote more time and effort and money into obtaining, processing, and incorporating critical user feedback so that each edition, and accompanying supplements, are the very best they can be.

All in all, I readily recommend Mankiw's Principles of Economics textbook.



Arming a new generation of students, and citizens   March 5, 2000
Stephen B. Cobb (Reston, Virginia USA)
64 out of 71 found this review helpful

Economics is the most abused science, the one most prone to fallacies (to which Henry Hazlitt's Economics in One Lesson is devoted), and yet certainly one of the most important. I purchased this textbook ten years after graduating from college, having read rave reviews and predictions of what it would mean for new generations of students freed from the long-outdated Keynesian textbook by Paul Samuelson, and indeed I was not disappointed. The book is not merely complete, comprehensive, and modern--it is designed to get knowledge into your head with maximum efficiency and enjoyment. A reviewer below called accused it of oversimplification, which I would call inaccurate even if it weren't an introductory text, in which space simply does not permit inclusion of the details of outmoded theories. Unless you are a student, you are unlikely to read it from start to finish, but you will find yourself skipping from one interesting topic or sidebar to the next that catches your eye.

Samuelson once said, "I don't care who writes a nation's laws, or crafts its advanced treaties, if I can write its economic textbooks," and Mankiw even slyly quotes him in his preface. Along with politics, the knowledge of economics is mandatory for being an informed voter. If more citizens were armed with this textbook, bonehead politicians would be a lot more respectful, and responsive to our real long-term needs.


A fine introductory text for students and generalists   August 14, 2004
Craig Matteson (Ann Arbor, MI)
16 out of 16 found this review helpful

This is a very readable textbook for undergraduates or interested generalists who want to develop a basic understanding of economics. Dr. Mankiw focuses on developing intuitions and habits of thought rather than teaching mathematical techniques. He does this by using ten basic principles that he lays out in the introduction. Throughout the book, whenever one of the ten principles is discussed he uses a special symbol in the margin to draw attention to that discussion.

The book's thirty-six chapters are divided into thirteen parts. The first two parts introduce the ten principles and the basic ideas of supply, demand, and markets. Parts 4-7 discuss topics in microeconomics including the areas of current research. Parts 8-13 discuss topics in macroeconomics and conclude with five debates over macroeconomic policy.

Since this is a general textbook the author really does not come down hard in one school of economic thought or another. Conservatives, like me, might find him a bit more accommodating of the role of government in society than we would think healthy. However, he is far from being a Keynesian or a New Keynesian. In fact, his discussion of the Phillips Curve has brought him under attack in some circles. I feel that his trying to develop an intuition of the tradeoff economies face when trying to pursue employment and price stability is understandable and, on balance, helpful to young students and generalists. Let them wrestle with the more advanced arguments after they develop their facility with the tools of economics.

The book does have a glossary, an index, and inside the back covers there is a list of a couple dozen books for summer reading.

This is not a one-volume compendium of economic thought for your bookshelf. It is a textbook for those who wish to develop a basic understanding of economics through general principles. If you are looking for a beginning text in econometrics, this is not the one for you.

The student workbook that you can buy to supplement this text is quite good and I recommend it as well. ISBN 0-324-28859-X


The Best Introduction to Economics!   June 19, 1999
11 out of 12 found this review helpful

If you read only one book on economics, read this. It deals clearly and concisely with the substance of economics and with the economists' approach -- an approach that far too few people appreciate, and which this book will instil in you. Claims that the book does not have enough math and does not cover Keynesian macroeconomics are misguided.

Regarding the supposed lack of math, one must remember that math is merely a tool that should be used to clarify and not confuse economics. If one can explain economics in English, so much the better. Economics needn't be hard. Mankiw's economics is at least as good as the best of the harder and more mathematical textbooks, and better than the rest. The need is for good economics to be explained well to a large audience, and this book does it superbly.

Regarding the exclusion of Keynesian short run macroeconomics, all I can say is "Whew! Finally! At last!". Keynesian short run macroeconomics taught at the undergraduate level is mindless, unintuitive curve pushing and generates neither understanding nor love for the subject. Teaching that (especially in a first course to a general audience!) is absolutely unforgivable. If anyone is married to Keynesian economics, they can use Mankiw's "Macroeconomics" which covers with exceptional clarity and brevity all the standard material in an intermediate macro course including the ugly Keynesian short run macroeconomics. However, I am against such an approach. The proper way would be to do Mankiw's "Principles of Economics" in the introductory course and then cover the market-clearing approach to macroeconomics of Barro's "Macroeconomics" in the intermediate macroeconomics course.