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Contents vii
Working with the Model: A Change in

Total Factor Productivity 139
Interpretation of the Model’s Predictions 142
M acroecono m ics I n A c t i o n 5.1
The Long Run: Total Factor Productivity in
Canada and the United States 143
T heory C onfron t s T h e D a t a 5.2
The Short Run: Total Factor Productivity and GDP 145
A Distorting Tax on Wage Income,
Tax Rate Changes, and the Laffer Curve 146
A Simplified One-Period Model with
Proportional Income Taxation 147
Income Tax Revenue and the Laffer Curve 150
A Model of Public Goods: How Large
Should the Government Be? 152
Canada’s Economic Action Plan 155
Chapter Summary 158
Key Terms 158
Questions for Review 159
Problems 160
Chapter 6 Search and Unemployment 163

The Behaviour of the Unemployment Rate,
the Participation Rate, and the Employment/
Population Ratio in Canada 164
A One-Sided Search Model of Unemployment 170
The Welfare of Employed and Unemployed Workers 170
Unemployment and Employment in
the United States and Europe 171
The Reservation Wage 172
The Determination of the Unemployment Rate 174
A Two-Sided Search Model of Search and Unemployment 178
Consumers 178
Firms 179
Matching 179
Optimization by Consumers 180
Optimization by Firms 181
Equilibrium 182
An Increase in the Employment Insurance Benefit 185
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viii Contents
An Increase in Productivity 186

A Decrease in Matching Efficiency 188
The Beveridge Curve 189
T heory C on f ro n t s T h e D a t a 6.1
Unemployment, Productivity, and Real GDP in Canada and
the United States: The 2008–2009 Recession 191
M acroecono m i c s I n A c t i o n 6.2
Employment Insurance and Incentives 194
Chapter Summary 196
Key Terms 197
Problems 198
Part 3 Economic Growth 199
Chapter 7 Economic Growth: Malthus and Solow 200

Economic Growth Facts 202
The Malthusian Model of Economic Growth 206
Analysis of the Steady State in the Malthusian Model 209
How useful is the Malthusian Model of Economic Growth? 213
The Solow Model: Exogenous Growth 215
Consumers 215
The Representative Firm 216
Competitive Equilibrium 217
Analysis of the Steady State 220
The Recent Trend in Economic Growth in Canada 228
Growth Accounting 230
The Solow Growth Model, Investment Rates,
and Population Growth 231
Solow Residuals and Productivity Slowdowns 232
Resource Misallocation and Total Factor Productivity 234
A Growth Accounting Exercise 236
Development Accounting 238
Chapter Summary 239
Key Terms 240
Problems 241

Contents ix
Chapter 8 Income Disparity among Countries

and Endogenous Growth 244
Convergence 245
Is Income per Worker Converging in the World? 249
Measuring Economic Welfare: Per Capita Income,
Income Distribution, Leisure, and Longevity 251
Endogenous Growth: A Model of
Human Capital Accumulation 252
The Representative Consumer 253
Economic Policy and Growth 257
Education and Growth 258
Convergence in the Endogenous Growth Model 260
Chapter Summary 262
Key Terms 262
Problems 263
Part 4 Savings, Investment, and Government Deficits 267
Chapter 9 A Two-Period Model: The Consumption–Savings

Decision and Credit Markets 268
A Two-Period Model of the Economy 269
Consumers 270
Consumption Smoothing and the Stock Market 284
Government 292
The Ricardian Equivalence Theorem 295
Ricardian Equivalence: A Numerical Example 297
Ricardian Equivalence: A Graph 298
Ricardian Equivalence and Credit Market Equilibrium 299
Ricardian Equivalence and the Burden of
the Government Debt 300
The Potential for Government Default and
the February 1995 Federal Budget 302

x Contents
Chapter Summary 304

Key Terms 305
Problems 307
Chapter 10 CreditMarket Imperfections: Credit Frictions,

Financial Crises, and Social Security 310
Credit Market Imperfections and Consumption 312
Asymmetric Information and the Financial Crisis 315
Limited Commitment and the Financial Crisis 317
Asymmetric Information and Interest Rate Spreads 318
Ricardian Equivalence, Intergenerational
Redistribution, and Social Security 321
Social Security and Incentives 326
Chapter Summary 330
Key Terms 330
Problems 331
Chapter 11 A Real Intertemporal Model with Investment 334

The Representative Consumer 336
Current Labour Supply 338
The Current Demand for Consumption Goods 340
Profits and Current Labour Demand 344
The Representative Firm’s Investment Decision 345
Investment with Asymmetric Information: The Financial Crisis 350
Government 352
The Current Labour Market and the Output Supply Curve 353
The Current Goods Market and the Output Demand Curve 359
The Complete Real Intertemporal Model 362
The Equilibrium Effects of a Temporary Increase in
G: Stimulus, the Multiplier, and Crowding Out 363
The 1990s Fiscal Contraction and the Government
Expenditure Multiplier 367
The Equilibrium Effects of a Decrease in the Current Capital Stock, K:
Capital Destruction from Wars and Natural Disasters 369

Contents xi
The Equilibrium Effects of an Increase in

Current Total Factor Productivity, z 371
The Equilibrium Effects of an Increase in
Future Total Factor Productivity, z¿: News about
the Future and Aggregate Economic Activity 373
An Increase in Credit Market Uncertainty:
Asymmetric Information and the Financial Crisis 374
News, the Stock Market, and Investment Expenditures 375
Interest Rate Spreads and Aggregate Economic Activity 378
Chapter Summary 380
Key Terms 381
Problems 383
Part 5 Money and Business Cycles 387
Chapter 12 AMonetary Intertemporal Model: Money,

Banking, Prices, and Monetary Policy 388
What Is Money? 389
Measuring the Money Supply 389
Monetary Intertemporal Model 391
Real and Nominal Interest Rates
and the Fisher Relation 392
Banks and Alternative Means of Payment 394
Equilibrium in the Market for Credit Card
Services and the Demand for Money 397
Government 401
Competitive Equilibrium—The Complete
Intertemporal Monetary Model 401
A Level Increase in the Money Supply
and Monetary Neutrality 403
Shifts in Money Demand 407
Instability in the Money Demand Function in Canada 410
Conventional Monetary Policy, the Liquidity Trap,
and Unconventional Monetary Policy 412
Quantitative Easing 414

xii Contents
Quantitative Easing in the United States 415
Negative Nominal Interest Rates 417
Chapter Summary 417
Key Terms 418
Problems 420
Chapter 13 Business Cycle Models with

Flexible Prices and Wages 421
The Real Business Cycle Model 423
Real Business Cycles and the Behaviour of Nominal Variables 427
Implications of Real Business Cycle Theory
for Government Policy 429
Critique of Real Business Cycle Theory 430
A Keynesian Coordination Failure Model 431
Business Cycle Models and the Great Depression
in Canada 432
The Coordination Failure Model: An Example 435
Predictions of the Coordination Failure Model 438
Policy Implications of the Coordination Failure Model 440
Critique of the Coordination Failure Model 441
Business Cycle Theories and the 2008–2009 Recession 441
Uncertainty and Business Cycles 442
Chapter Summary 445
Key Terms 446
Problems 447
Chapter 14 New Keynesian Economics: Sticky Prices 449

The New Keynesian Model 451
The Non-Neutrality of Money in the New Keynesian Model 453
The Role of Government Policy in
the New Keynesian Model 455
Does the New Keynesian Model Replicate the Data? 459
The Liquidity Trap and Sticky Prices 461
Policy Lags 462

Contents xiii
Criticisms of Keynesian Models 463

M acroecono mics I n A c t i o n 14.2
New Keynesian Models, the Taylor Rule,
and Quantitative Easing 464
How Sticky Are Nominal Prices? 466
Chapter Summary 467
Key Terms 468
Problems 469
Chapter 15 Inflation:Phillips Curves

and Neo-Fisherism 471
Inflation in a Basic New Keynesian Model 473
Monetary Policy Goals 474
The Phillips Curve 478
Low Real Interest Rates and the Zero Lower Bound 480
Forward Guidance in the United States after 2008 484
Neo-Fisherism and a New Keynesian
Rational Expectations Model 487
Neo-Fisherism and Taylor Rules 491
Chapter Summary 495
Key Terms 496
Problems 497
Part 6 International Macroeconomics 499
Chapter 16 International Trade in Goods and Assets 500

A Two-Period Small Open-Economy Model 501
Credit Market Imperfections and Default 504
Is a Current Account Deficit a Bad Thing? 505
Greece and Sovereign Default 509
Production, Investment, and the Current Account 511
The Effects of an Increase in the World Real Interest Rate 512

xiv Contents
A Temporary Increase in Government Expenditure and

the Effects on the Current Account and Domestic Output 513
The Effects of Increases in Current and
Future Total Factor Productivity 514
Current Account Deficits, Consumption, and Investment 516
Chapter Summary 517
Key Terms 518
Problems 519
Chapter 17 Money in the Open Economy 521

The Nominal Exchange Rate, the Real Exchange Rate,
and Purchasing Power Parity 522
Flexible and Fixed Exchange Rates 524
The PPP Relationship for the United States and Canada 524
A Monetary Small Open-Economy Model
with a Flexible Exchange Rate 527
The Neutrality of Money with a Flexible Exchange Rate 529
A Nominal Shock to the Domestic Economy
from Abroad: P* Increases 530
A Real Shock to the Domestic Economy from Abroad 531
A Monetary Small Open-Economy Model
with a Fixed Exchange Rate 533
A Nominal Foreign Shock under a Fixed Exchange Rate 535
A Real Foreign Shock under a Fixed Exchange Rate 535
Exchange Rate Devaluation 537
Flexible versus Fixed Exchange Rates 538
Sovereign Debt and the EMU 540
Capital Controls 542
The Capital Account and the Balance of Payments 542
The Effects of Capital Controls 543
A New Keynesian Sticky Price Open-Economy Model 546
Flexible Exchange Rate 546
M acroecono m i c s i n A c t i o n 17.2
Do Capital Controls Work in Practice? 548
Fixed Exchange Rate 550
Chapter Summary 552
Key Terms 552
Problems 554

Contents xv
Part 7 Money, Banking, and Inflation 557
Chapter 18 Money, Inflation, and

Banking: A Deeper Look 558
Alternative Forms of Money 559
Commodity Money and Commodity-Backed
Paper Money: Yap Stones and Playing Cards 561
Money and the Absence of Double Coincidence of Wants:
The Roles of Commodity Money and Fiat Money 562
Long-Run Inflation in the Monetary Intertemporal Model 565
Optimal Monetary Policy: The Friedman Rule 570
Should the Bank of Canada Reduce the
Inflation Rate to Zero or Less? 573
Financial Intermediation and Banking 574
Properties of Assets 574
Financial Intermediation 575
The Diamond-Dybvig Banking Model 577
Deposit Insurance 583
Bank Failures and Banking Panics in
Canada and the United States 584
The Financial Crisis in the United States:
Banks, Non-bank Financial Intermediaries,
Too-Big-to-Fail, and Moral Hazard 586
Chapter Summary 589
Key Terms 589
Problems 591
Mathematical Appendix 593

Index 624

Preface
This book follows a modern approach to macroeconomics by building macroeconomic models

from microeconomic principles. As such, it is consistent with the way that macroeconomic
research is conducted today.
This approach has three advantages. First, it allows deeper insights into economic growth pro-
cesses and business cycles, the key topics in macroeconomics. Second, an emphasis on microeco-
nomic foundations better integrates the study of macroeconomics with approaches that students
learn in microeconomics courses and in economics field courses. Learning in macroeconomics
and microeconomics thus becomes mutually reinforcing, and students learn more. Third, in fol-
lowing an approach to macroeconomics that is consistent with current macroeconomic research,
students will be better prepared for advanced study in economics.
Structure
The text begins in Part 1 with an introduction and study of measurement issues. Chapter 1
describes the approach taken in the book and the key ideas that students should take away. It
previews the important issues that will be addressed throughout the book, along with some recent
issues in macroeconomics, and highlights how these will be studied. Measurement is discussed
in Chapters 2 and 3, first with regard to gross domestic product, prices, savings, and wealth, and
then with regard to business cycles. In Chapter 3, we develop a set of key business cycle facts that
will be used throughout the book, particularly in Chapters 13 and 14, where we investigate how
alternative business cycle theories fit the facts.
Our study of macroeconomic theory begins in Part 2. In Chapter 4, we study the behaviour
of consumers and firms in detail. In the one-period model developed in Chapter 5, we use the
approach of capturing the behaviour of all consumers and all firms in the economy with a single rep-
resentative consumer and a single representative firm. The one-period model is used to show how
changes in government spending and total factor productivity affect aggregate output, employment,
consumption, and the real wage. Then, in Chapter 6, we develop two models of search and unem-
ployment, so as to study in detail the macroeconomic determinants of labour market behaviour.
With a basic knowledge of static macroeconomic theory from Part 2, we proceed in Part 3
to the study of economic growth. In Chapter 7 we discuss a set of economic growth facts that are
then used to organize our thinking in the context of models of economic growth. The first growth
model we examine is a Malthusian growth model, consistent with the late-eighteenth century
ideas of Thomas Malthus. The Malthusian model predicts well the features of economic growth
in the world before the Industrial Revolution, but it does not predict the sustained growth in per

Preface xvii
capita incomes that occurred in advanced countries after 1800. The Solow growth model, which
we examine next, does a good job of explaining some important observations concerning modern
economic growth. Finally, Chapter 7 explains growth accounting, which is an approach to dis-
entangling the sources of growth. In Chapter 8 we discuss income disparities across countries in
light of the predictions of the Solow model, and introduce a model of endogenous growth.
In Part 4, we first use the theory of consumer and firm behaviour developed in Part 2 to
construct (in Chapter 9) a two-period model that can be used to study consumption–savings
decisions, the behaviour of credit markets, and the effects of government deficits on the economy.
Credit market frictions, with a particular focus on applications related to the financial crisis, is the
topic of Chapter 10. The two-period model is then extended to include investment behaviour in
the real intertemporal model of Chapter 11. This model will then serve as the basis for much of
what is done in the remainder of the book.
In Part 5, we include monetary phenomena and banking in the real intertemporal model of
Chapter 12, so as to construct a monetary intertemporal model. This model is used in Chapter 12
to examine the effects of changes in monetary policy on the economy. Then, in Chapters 13 and
14, we study non-Keynesian and Keynesian theories of the business cycle. These theories are com-
pared and contrasted, and we examine how alternative business cycle theories fit the data and how
they help us to understand recent business cycle behaviour in Canada. Chapter 15 extends the
New Keynesian sticky price model of Chapter 14, so that the causes and consequences of inflation
can be studied, along with the control of inflation by central banks. This chapter also introduces
neo-Fisherian theory, which is a provocative alternative to conventional central banking theories
of inflation control.
Part 6 is devoted to international macroeconomics. In Chapter 16, the models of Chapters 5
and 11 are used to show what determines the current account surplus, along with an analysis of
the default on sovereign debt. Then, in Chapter 17, we show how exchange rates are determined,
and we investigate the roles of fiscal and monetary policy in an open economy that trades goods
and assets with the rest of the world.
Finally, Part 7 examines some important topics in macroeconomics. In Chapter 18, we study
in more depth the role of money in the economy; the effects of money growth on inflation; and
aggregate economic activity, banking, and deposit insurance.
Features
Several key features enhance the learning process and illuminate critical ideas for the student. The
intent is to make macroeconomic theory transparent, accessible, and relevant.
Real-World Applications
Applications to current and historical problems are emphasized throughout in two running fea-
tures. The first is a series of “Theory Confronts the Data” sections, which show how macroeco-
nomic theory comes to life in matching (or sometimes falling short of matching) the characteristics
of real-world economic data. A sampling of some of these sections includes the 1990s fiscal con-
traction in Canada and the government expenditure multiplier, consumption smoothing and the
stock market, and the Phillips curve. The second running feature is a series of “Macroeconomics
in Action” boxes. These real-world applications relating directly to the theory encapsulate ideas

xviii Preface
from front-line research in macroeconomics and the history of economic thought, and they aid
students in understanding the core material. For example, some of the subjects examined in these
boxes are social security and incentives, sovereign debt and the European Monetary Union, and
forward guidance in the United States after 2008.
Art Program
Graphs and charts are plentiful in this book. They act as visual representations of macroeconomic
models that can be manipulated to derive important results and show the key features of impor-
tant macro data in applications. To aid the student, graphs and charts use a consistent system that
encodes the meaning of particular elements in graphs and of shifts in curves.
End-of-Chapter Summary and List of Key Terms

Each chapter wraps up with a summary of its key ideas, followed by a glossary of key terms. The
key terms are listed in the order in which they appear in the chapter, and they are highlighted in
bold typeface where they are first explained within the chapter.
Questions for Review

These questions are intended as self-tests for students after they have finished reading the chapter
material. The questions relate directly to ideas and facts covered in the chapter, and answering
them will be straightforward if the student has read and comprehended the chapter material.
Problems
The end-of-chapter problems will help the student in learning the material and applying the
macroeconomic models developed in the chapter. These problems are intended to be challenging
and thought provoking.
Notation
For easy reference, definitions of all variables used in the text are included on the end papers.
Mathematics and Mathematical Appendix

In the body of the text, the analysis is mainly graphical, with some knowledge of basic algebra
required; calculus is not used. However, for students and instructors who desire a more rigorous
treatment of the material in the text, a mathematical appendix develops the key models and results
more formally, assuming a basic knowledge of calculus and the fundamentals of mathematical
economics. The Mathematical Appendix also contains problems on this more advanced material.
Flexibility
This book was written to be user friendly for instructors with different preferences and with
different time allocations. The following core material is recommended for all instructors:
Chapter 1 Introduction
Chapter 2 Measurement

Preface xix
Chapter 3 Business Cycle Measurement

Chapter 4 Consumer and Firm Behaviour: The Work–Leisure Decision and Profit Maximization
Chapter 5 A Closed-Economy One-Period Macroeconomic Model
Chapter 9 A Two-Period Model: The Consumption–Savings Decision and Credit Markets
Chapter 11 A Real Intertemporal Model with Investment
Some instructors find measurement issues uninteresting and may choose to omit parts
of Chapter 2, although, at the minimum, instructors should cover the key national income
accounting identities. Parts of Chapter 3 can be omitted if the instructor chooses not to empha-
size business cycles, but there are some important concepts introduced here that are generally
useful in later chapters, such as the meaning of correlation and how to read scatter plots and
time-series plots.
Chapters 7 and 8 introduce economic growth at an early stage. However, Chapters 7 and 8
are essentially self-contained. Given the recent keen interest of students in business cycle and
financial issues, instructors may want to forego growth, in favour of search and unemploy-
ment (Chapter 6), and monetary and business cycle theory in Chapters 12 to 15. Though the
text has an emphasis on micro foundations, Keynesian analysis receives a balanced treatment.
For example, we examine Keynesian coordination failure models in Chapter 13, and we study
a New Keynesian sticky price business cycle model in Chapters 14 and 15. Instructors can
choose to emphasize economic growth or business cycle analysis, or they can give their course
an international focus. As well, it is possible to de-emphasize monetary factors. As a guide, the
text can be adapted as follows:
Focus on Economic Growth

Include Chapters 7 and 8, and consider dropping Chapter 6, or Chapters 13 to 15, depending
on time available.
Focus on Business Cycles

Drop Chapters 7 and 8, and include Chapter 6 and Chapters 12 to 15.
International Focus
Chapters 16 and 17 can be moved up in the sequence. Chapter 16 can follow Chapter 11, and
Chapter 17 can follow Chapter 12.
Advanced Mathematical Treatment

Add material as desired from the Mathematical Appendix.
What’s New in the Fifth Canadian Edition

The first through fourth Canadian editions of Macroeconomics had excellent receptions in the
market. In the fifth Canadian edition, I build on the strengths of the first through fourth Canadian
editions while modifying and streamlining existing material and adding new topics, in line with

xx Preface
the interests of students and instructors, new developments in macroeconomic thought, and
recent events in the Canadian and world economies. As well, applications have been added to
help students understand macroeconomic events that have occurred since the fourth edition
was written, and the end-of-chapter problems have been expanded. In more detail, here are the
highlights of the revision:
• In Chapter 5, there is new material on the optimal choice of government spending.
• Chapter 6 has been revised to include a section on the “one-sided search model,” an approach
to modeling the behaviour of the unemployed. This model determines the reservation wage for
an unemployed worker, and shows how employment insurance benefits, job offer rates, and
separations determine the unemployment rate.
• Chapter 12, “A Monetary Intertemporal Model: Money, Banking, Prices, and Monetary
Policy,” includes a new section on unconventional monetary policy and the zero lower bound.
Unconventional policies include quantitative easing and negative nominal interest rates.
• In Chapter 13, there is a new section on business cycle theories as they relate to the 2008–2009
recession in particular.
• Chapter 14 address how New Keynesian models fit the data, and the chapter contains new
material on the liquidity trap.
• Chapter 15 is entirely new, and analyzes inflation and its causes in a New Keynesian framework.
A basic New Keynesian model shows how monetary policy is conducted, in conventional
circumstances, and when the zero lower bound on the nominal interest rate is a problem. The
chapter discusses how secular stagnation or world savings gluts can lead to low real interest
rates and zero lower bound monetary policies. Finally, a dynamic New Keynesian rational
expectations model is used to introduce neo-Fisherism—the idea that central banks should
correct too-low inflation by increasing nominal interest rates.
• Chapter 16 has been revised to incorporate a model of sovereign debt default.
• In Chapter 17, there is a new section that extends the Keynesian sticky price model of Chapter 14
to an open-economy setting.
• Macroeconomics in Action and Theory Confronts the Data features have changed. Some
have been dropped and others added to ensure contemporary relevance of the material.
• New end-of-chapter problems have been added.
Supplemental Materials
The following instructor supplements are available for downloading from a password-protected
section of Pearson Education Canada’s online catalogue (www.pearsoned.ca/highered). Navigate
to your book’s catalogue page to view a list of those supplements that are available. See your local
sales representative for details and access.

Preface xxi
Instructor’s Manual
This manual contains chapter key ideas, teaching goals, classroom discussion topics, outline, and
textbook problem solutions.
Computerized Test Bank

Pearson’s computerized test banks allow instructors to filter and select questions to create quizzes,
tests or homework. Instructors can revise questions or add their own, and may be able to choose
print or online options. The test bank for this text, which is also available in Microsoft Word,
includes over 1000 multiple-choice questions and one essay question per chapter.
The PowerPoint Slides

PowerPoint Presentations cover the key concepts and figures in each chapter.
Image Library
The Image Library provides digital versions of all the figures and tables from the text.
Acknowledgments
For this fifth Canadian edition, I am grateful to the many economists who have provided formal
reviews of the previous editions. Their observations and suggestions have been very helpful.
Special thanks go to Claudine O’Donnell, Megan Farrell, Richard di Santo, Rachel Stuckey,
and Susan M. Johnson at Pearson Canada for their work on this edition.
Stephen D. Williamson

Ab o u t t h e A u t h o r
Stephen Williamson is a Vice President at the Federal Reserve Bank of St. Louis. He attended
Merwin Greer Public School, Dale Road Junior High School, and Cobourg District Collegiate
Institute East in Cobourg, Ontario; received a B.Sc. (Honours, Mathematics) and an M.A. in
Economics from Queen’s University in Kingston, Ontario; and received his Ph.D. from the
University of Wisconsin–Madison in 1984. He has held academic positions at Queen’s University,
the University of Western Ontario, the University of Iowa and Washington University in St. Louis,
and has worked as an economist at the Federal Reserve Bank of Minneapolis and the Bank of
Canada. Professor Williamson has been an academic visitor at the Federal Reserve Banks of Atlanta,
Kansas City, Minneapolis, Cleveland, and Philadelphia, at the Board of Governors of the Federal
Reserve System in Washington, D.C., and at the Bank of Canada. He has also been a long-term vis-
itor at the University of Tilburg, the Netherlands; the London School of Economics; the University
of Edinburgh; Victoria University of Wellington, New Zealand; Seoul National University; Hong
Kong University; Indiana University; and Fudan University. Professor Williamson has published
scholarly articles in the American Economic Review, the Journal of Political Economy, the Quarterly
Journal of Economics, the Review of Economic Studies, the Journal of Economic Theory, and the Journal
of Monetary Economics, among other prestigious economics journals. His research, focused mainly
on macroeconomics, monetary theory, and the theory of financial intermediation, has been
supported by the National Science Foundation, the Lynde and Harry Bradley Foundation, and
the Social Sciences and Humanities Research Council of Canada. Professor Williamson lives in
Clayton, Missouri.
This text reflects the author’s views and does not necessarily reflect the views of the Federal
Reserve Bank of St. Louis, the Board of Governors of the Federal Reserve System, or the Federal
Reserve System.

Part
1
Part 0 Introduction and
Measurement Issues
PART_TTL
Part 1 contains an introduction to macroeconomic analysis and a description of the approach
in this text of building useful macroeconomic models based on microeconomic principles.
We discuss the key ideas that will be analyzed and some current issues that the macroeco-
nomic theory developed in Parts 2 to 7 will help us to understand. Then, to lay a foundation
PART_FIRST
for what is done later, we explore how the key variables relating to macroeconomic theory
are measured in practice. Finally, we analyze the key empirical facts concerning business
cycles. These facts will prove useful in Parts 2 to 7 in showing the successes and shortcom-
ings of macroeconomic theory in explaining real-world phenomena.
M01A_WILL7147_05_SE_P01.indd 1 22/09/16 2:39 pm

Chapter
1 Introduction
This chapter frames the approach to macroeconomics that we take in this

text, and it foreshadows the basic macroeconomic ideas and issues that we
will develop in future chapters. We first discuss what macroeconomics is and then go on
to look at the two phenomena of primary interest to macroeconomists—economic growth
and business cycles—in terms of Canadian economic history since 1870. Then, we explain
the approach this text takes—building macroeconomic models with microeconomic prin-
ciples as a foundation—and discuss the issue of disagreement in macroeconomics. Finally,
we explore the key lessons that we will learn from macroeconomic theory in this text, and
we discuss how macroeconomics helps us understand recent and current issues.
What Is Macroeconomics?
Macroeconomists are motivated by large questions, by issues that affect many people and
many nations of the world. Why are some countries exceedingly rich and others exceed-
ingly poor? Why are most Canadians so much better off than their parents and grandpar-
ents? Why are there fluctuations in aggregate economic activity? What causes inflation?
Why is there unemployment?
Macroeconomics is the study of the behaviour of large collections of economic agents.
It focuses on the aggregate behaviour of consumers and firms, the behaviour of govern-
ments, the overall level of economic activity in individual countries, the economic inter-
actions among nations, and the effects of fiscal and monetary policy. Macroeconomics is
distinct from microeconomics in that it deals with the overall effects on economies of the
choices that all economic agents make, rather than the choices of individual consumers
or firms. Since the 1970s however, the distinction between microeconomics and macro-
economics has blurred, for microeconomists and macroeconomists now use much the
same kinds of tools. That is, the economic models that macroeconomists use, consist-
ing of descriptions of consumers and firms, their objectives and constraints, and their
interactions, are built up from microeconomic principles, and these models are typically
2
M01B_WILL7147_05_SE_C01.indd 2 22/09/16 2:38 pm

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In dogs there are the same general symptoms with vomiting. The
vomited material is usually remasticated and swallowed. The
swelling in the pharynx can be felt from without, or seen through the
open mouth. The tonsils are usually enlarged. Pressure on the
pharynx or gullet produces instant regurgitation.
Treatment consists in the removal of the tumor when possible.
Malignant growths and multiple tumors are not favorable for
treatment. Actinomycosis can be treated throughout by iodides, or
these may supplement the surgical measures. In the short-faced
animals an ecraseur, or a wire-snare passed through a tube may be
employed. (See pharyngeal polypi).
ESOPHAGITIS. INFLAMMATION OF THE
GULLET.
Causes: Alimentary and therapeutic; parasitic and accidental traumatisms;

mechanical irritants; acrids; caustics; parasites—gongylonema, coccidia,
spiroptera. Extension inflammations. Lesions: hyperæmia; epithelial degeneration
and desquamation; erosion; petechiæ; suppuration; fibroid contraction;
sacculation; polypi. Symptoms: dysphagia, difficult deglutition; eructation; cough;
upward wave motion in jugular furrow; colicy pains; probang arrested; fever.
Treatment: liquid or semi-liquid food; for caustics, antidotes; cold water; ice;
antiseptics; derivatives; open abscess; potassium iodide.
Causes. This usually arises from injury to the mucous membrane

and in the milder forms remains confined to this structure. In the
more severe, it extends to the muscular coat and even to the
periœsophagean tissues. The causes may be divided into alimentary
and therapeutic irritants; parasitic or accidental traumatisms; and
extension of inflammation from the pharynx or other adjacent part.
Among irritants taken as food, may be named hot mashes, bolted
by a hungry and gluttonous horse, and temporarily arrested in the
gullet by reason of the resulting irritation of the mucous membrane.
In other cases, coarse fibrous fodder is bolted without previous
mastication, and scratches and abrades the œsophagean mucosa
leading to transient or progressive inflammation. In other instances
diseases of the teeth, jaws, temporo-maxillary joint, or salivary
glands prevent the necessary trituration of the food, and it is
swallowed in a rough, fibrous, or even a dry condition. Again the
impaction of a solid body (turnip, apple, potatoe, egg) or of a
quantity of finely divided grain or fodder so as to obstruct the lumen
of the gullet, is an occasional cause. The density of the epithelium
reduces these dangers to the minimum, yet a too rough morsel, or an
undue detention of the less irritating material will determine
hyperæmia and even inflammation and infective invasion. Acrid and
irritant vegetables in the food are less injurious when thoroughly
insalivated, as their contact with the œsophagean walls is then very
slight and transient.
Irritant and caustic chemical agents given for therapeutic
purposes, attack the mouth, pharynx and stomach, more severely
than the gullet through which they are passed with great rapidity. In
some cases, however, the agent will adhere by reason of its powdery,
gummy or balsamic character and will then act as a direct irritant.
Solutions of caustic alkalies (weak lye) given to correct acid gastric
indigestion in the horse, and ammonia to remedy tympany in cattle,
when insufficiently diluted, will dangerously attack the œsophagean
mucosa.
Parasitic irritation is not so common here as in other parts of the
intestinal canal where the contents are longer delayed and are passed
with less friction, yet certain parasites are found in this region and
may even produce considerable irritation. The gongylonema of the
thoracic œsophagean mucosa of ruminants and swine are apparently
harmless. The psorospermia of the œsophagean muscles of the same
animals are alleged to cause œdema of the glottis, asphyxia and
epilepsy. The spiroptera microstoma of the horse has in one instance
known to us caused extensive denudation of the muscular coat
within a foot of the cardiac end of the gullet. Finally we have found
bots hooked on to the œsophagean mucosa close to the cardia,
causing much irritation and spasm. The spiroptera sanguinolenta is
often present in chambers hollowed in the œsophagean mucosa of
the dog.
Traumatic causes appear in the form of contusions and bruises
from without, but much more frequently from foreign bodies, and
probangs operating from within. The use of a whip or of a rope
without a cup-shaped end for the relief of a choked animal. Short of
the occurrence of laceration this often produces contusion and
abrasion which results in local inflammation. Even the too forcible
dislodgment of a solid body by a probang of approved pattern, may
bruise and scratch the gullet when the seat of violent spasm. Pins,
needles, wire, thorns and other sharp bodies are liable to do serious
damage during their passage in an ordinary bolus and when they
transfix the mucosa violent infective inflammation may ensue.
Extension inflammations from the throat, and from phlegmous,
abscesses, tumors, etc., in the jugular furrow need only be mentioned
in this connection, as the primary disease will be clearly in evidence.
Lesions. These are usually circumscribed when due to a traumatic
injury and extended when caused by caustics or irritants. The
affected section is swollen, and surrounded by some serous effusion.
When the muscular coat is involved it is often paler than normal, and
microscopically shows extensive granular and fatty degeneration.
The mucosa usually sloughs off its epithelial layer, sometimes over
an extensive area (thoracic portion, Renault; whole gullet, Bertheol),
and the exposed raw surface is of a deep red or violet. When the
epithelium is not shed, it is infiltrated, swollen and friable breaking
down under the slightest manipulation. Petechiæ and slight blood
extravasations are abundant, and diffuse suppuration is not
uncommon. In traumatic injuries necrosed areas are found in the
muscular and mucous coats. Strictures, dilatations, and polypoid
growths are liable to follow as sequelæ.
Symptoms. These usually manifest themselves from two to four
days after the operation of the cause. There is much difficulty in
deglutition, the effort to swallow either solids or liquids causing
acute suffering, with extension of the head on the neck and strained
contraction of the facial muscles. If the liquid succeeds in passing the
pharynx, it is arrested at the seat of inflammation and regurgitated
through the nose and mouth, or in solipeds through the nose only.
This takes the appearance of emesis even if nothing actually comes
from the stomach. The animal shakes the head violently, breathes
hurriedly, and has fits of paroxysmal coughing. A wave extending
from below upward along the jugular furrow and followed by nasal
discharge is a marked symptom, as the violence of the inflammation
increases. Uneasy movements of the limbs, pawing and lying down
and rising, indicate the existence of colic, and this is aggravated by
the administration of anodynes or antispasmodics by the mouth. In
cattle, rumination is arrested, froth accumulates around the lips, the
rumen becomes tympanitic, and colicy movements appear.
Oftentimes a swelling extends upward in the jugular furrow, and
even in its absence, pressure with the fingers along the furrow will
often detect an area of tenderness with or without local swelling.
Fever with more or less elevation of temperature, is a general
symptom. There may be wheezing breathing or loud stertor. The
passage of a probang is arrested by the swelling or spasm at the
diseased part and when withdrawn may be covered with pus or fœtid
debris. In the horse a small probang may be passed through the
nose.
Treatment. In a slight congestion at the seat of a recent
obstruction and which tends to renewed obstruction, little more is
necessary than to restrict the feed for a few days to soft mashes so
that irritation of the sensitive surface, spasm and the arrest of the
morsel may be obviated. Plenty of pure water or of well boiled
linseed or other gruel should be allowed.
In cases in which the obstruction is still present in the gullet, its
removal by probang or looped wire is the first consideration, to be
followed by the measures mentioned above.
In case of the swallowing of a caustic agent, no time should be lost
in giving an antidote. For the mineral or caustic organic acids, lime
water, magnesia, or other bland basic agent is demanded. For caustic
alkalies or basic agents, bland acids, such as vinegar, citric acid, or
even a mineral acid very largely diluted will be in order. In both these
cases and in that of caustic salts, albuminous and mucilaginous
agents, eggs, linseed tea, slippery elm, gums, and well boiled gruels
are indicated. To these may be added small doses of laudanum when
the irritation is great. Iced drinking water, iced milk, or iced gruels
are often soothing to the suffering animal, and cold compresses,
snow or ice applied along the jugular furrow is often valuable. To
counteract the septic developments on the affected mucous
membrane, chlorate of potash, boric acid, salol, naphthalin,
naphthol, pyoktannin, or even weak solutions of phenic acid or
creolin may be used. In the slighter forms of inflammation or when
the acute form threatens to persist, an active counter-irritant of
mustard or cantharides may be applied along the jugular furrow.
In case of abscess, as manifested by fluctuation following a hard,
indurated, painful swelling, a free incision should be followed by
frequent injections of antiseptic lotions or by the packing of the
cavity with such bland antiseptics as salol, boric acid, or iodoform on
cotton.
As inflammation subsides, potassium iodide may be given, both as
an antiseptic and a resolvent, to counteract the tendency to fibroid
contraction and stricture of the gullet.
SPASM OF THE ŒSOPHAGUS.
ŒSOPHAGISMUS.
Causes: nervous disorders or lesions, pharyngeal, œsophagean, or gastric

disease, œsophagean parasites, choking, tumors, ulcers, cold drinks. Symptoms:
extended drooping head, working jaws, frothing, pawing, attempts at swallowing,
alkaline regurgitation, cries, rigid gullet, tenderness. May be paroxysmal with
intervening dullness. Treatment: by sound; by removal of obstruction; by
antispasmodics. Embrocations. Tonics.
Causes. This has been noticed as a concomitant of certain diseases

of the nervous centres, such as rabies, tetanus, or epilepsy, and those
of the pharynx or stomach. Cadeac has seen it in connection with
stricture, and the present writer has observed it as a result of larvæ of
œstri hooked on to the mucosa above the cardia. It is an important
factor in most cases of choking, and may depend on tumors, ulcers,
or even cold beverages. Animals with a specially nervous
organization are particularly subject to it and it may thus be an
hereditary family trait. It has been especially noticed in solipeds and
calves.
Symptoms. A feeding animal suddenly ceases to eat, extends the
head on the neck, drops the nose toward the ground, moves the jaws
constantly, froths at the mouth or lets the saliva drivel to the ground,
moves the fore feet uneasily pushing the litter under the belly, makes
efforts at deglutition during which, waves may be seen to descend
along the jugular furrow, followed by regurgitation and discharge of
the liquid as by emesis. The act is often followed by a slight cry.
Manipulations of the left jugular furrow detects the gullet as a firm,
rigid cord, unless when liquids are passing as above, and
auscultation reveals a rattling or gurgling noise as if in jerks.
Pressure on the gullet is often very painful, increasing the spasm and
rigidity, and causing the animal to cry out. Wheezing breathing may
attend the discharge of saliva through the nose, and violent
paroxysms of coughing may be caused by the entrance of this liquid
into the larynx.
In the majority of cases no food is swallowed and nothing but
saliva is disgorged, which together with the absence of an acid odor
distinguishes this from true vomiting. In an exceptional case of the
author’s, occurring in a colt, the animal continued to masticate and
swallow green food which gradually filled the whole length of the
gullet, practically paralyzing it. In ordinary cases a small sound can
usually be passed into the stomach. In cases of obstruction, however,
by a solid morsel, or by an accumulation of soft solids, the probang
will enable one to detect the condition. The acute symptoms may
occur in paroxysms of a few minutes in length, between which, the
animal remains dull and disspirited until the new attack supervenes.
Recovery is at times as sudden as the onset, though there remains,
for a length of time, liability to a relapse. Cadeac has seen a
succession of such attacks which extended over a year and a half.
Treatment. In many cases the passage of a probang or sound, will,
by the mere distension of the gullet, overcome the local spasm,
though it may be necessary to repeat the operation several times. In
case the sound causes much pain the end of the instrument may be
well smeared with solid extract of belladonna, and after passing this
as far as the obstruction a short time may be allowed, before its
passage is again attempted. In case obstruction by soft solids has
taken place, the passage of the wire loop will serve to break up the
mass and even to draw it up toward the mouth.
The administration of antispasmodics is the next indication.
Chloroform or ether by inhalation or in solution in water, chloral
hydrate as an enema, morphia or atropia hypodermically may be
used according to convenience. Bromide of potassium and other
antispasmodics given by the mouth, too often fail to pass the
obstruction and thus prove useless, except in the intervals of the
spasms.
Fomentations of the lower border of the neck with warm water,
and frictions over the region of the gullet with camphorated spirit,
essential oils, ammonia, or in calves with oil of turpentine, often
contribute to relieve the spasm.
Finally after the severity of the attack has passed, a course of bitter
tonics and above all of nux vomica will fortify the system against a
relapse.
PARALYSIS OF THE ŒSOPHAGUS.
Causes: nervous lesions and disorders; arytenectomy; over distension; stricture;

parasites. Symptoms: dysphagia; regurgitation; cough; dyspnœa; hard packed
gullet. Inhalation pneumonia. Lesions. Treatment: remove cause; liquid food;
dilatation; nerve sedatives and stimulants; electricity; counter-irritants.
Causes. This has been noticed in a number of cases in solipeds,

and attributed to central nervous lesions, cerebral concussion
(Straub), encephalitis (Hering, Bornhauser), paralysis of the fore
extremities (Meier), pharyngeal paralysis (Puschmann). Möller has
seen it several times consequent on arytenectomy, while Dieckerhoff
and Graf have seen it occur without any clearly defined cause. In a
case referred to above, the present writer found it connected with the
attachment of larvæ of œstri in the lower end of the gullet. Stricture
and impaction may be a further cause.
Symptoms and lesions. There is more or less interference with
deglutition, culminating in complete inability to swallow, and the
rejection of morsels of masticated food by the nose. Cough may also
occur from the descent of food toward the lungs, with more or less
dyspnœa and oppression of the breathing. Manipulation along the
left jugular furrow, detects the œsophagus as a prominent hard,
rope-like mass which fills up the groove unduly. When death occurs
rapidly the gullet is found gorged with masticated food throughout
its entire length. In certain instances gangrenous pneumonia is
found, the result of the penetration of food into the bronchia. In
other cases there are lesions of the medulla oblongata, or of the
vagus or glossopharyngeal nerves or their œsophagean branches.
Death usually results from obstruction, inanition, or, in case the
paralysis is partial, from pneumonia or exhaustion.
Treatment. First remove or correct the existing cause of the
disease. Impaction may be broken up by the use of the wire loop, or
pincer probang; parasites may be expelled by passing a cupped
probang; the impactions following arytenectomy can be obviated by
feeding gruels, milk and other liquid foods only, and from a bucket
set on the ground; stricture may be dilated by the use of graduated
sounds; and nervous diseases may be dealt with according to their
specific nature in each several case. When any definite cause of this
kind has been overcome the persistent use of strychnia, subcutem, or
by the mouth, may be effectual in overcoming the paresis of the
gullet. Hypodermic injections are best made along the left jugular
groove, and frictions, stimulating embrocations, and galvanic
currents may be employed with excellent effect.
ŒSOPHAGEAN TUMORS.
Forms of neoplasm in gullet of horse, ox, sheep, pig, dog. Symptoms: dysphagia;
eructation; vomiting; bloating; cough; dyspnœa; stertor; fœtor; palpitation.
Treatment.
These have been often noticed in the lower animals. In the horse
have been noticed melanoma (Olivier, Röll, Kopp, Besnard,
Pouleau), fibroma (Dandrieu, Dieckerhoff), Carcinoma (Chouard,
Lorenz, Cadeac, Laurent), epithelioma (Blanc, Lorenz), Leiomyoma
(Lucet, Lothes), cystoma (Caillau, Legrand), mucous cysts (Lucet).
In cattle papilloma is especially common, having been noted by
Johne, Mons, Fessler, Schütz, Lusckar, Gratia, Beck, Cadeac and Kitt.
Tubercles, and fibroid masses with cystic purulent centres are
not uncommon. Actinomycosis is also frequent, sometimes hard
and warty and at others soft and vascular.
In the Sheep, Dandrieu found between the muscular and mucous
coats a hard tumor as large as a hen’s egg, the removal of which put a
stop to a persistent choking. In both cattle and sheep, swellings
from coccidiosis are common; in cattle and swine from
gongylonema, and in sheep from filaria (Harms) or spiroptera
(Zurn).
In pigs, fibroma is met with in the walls of the gullet (Raveski)
and in dogs fibroma, papilloma, and the tumors of spiroptera.
Symptoms. The coccidia and spiroptera usually cause few
symptoms or none, but neoplasms usually develop symptoms of
obstruction, dysphagia, eructation, vomiting, and all the indications
of choking according to their seat. These do not come on suddenly
and recover as in simple choking, but even though there may be
periodic obstructions, spasms and paroxysms, there is a slow,
progressive advance as the neoplasms increase. Stertorous or
mucous breathing, cough, dyspnœa and fœtid exhalations are
common, the symptoms may be aggravated when the head is bent,
and the tumor may even be felt on palpation of the throat or left
jugular furrow. In ruminants tympany occurs after feeding.
Treatment is surgical and consists in the removal of the tumors by
incision and ecraseur or otherwise. Thoracic œsophagean tumors are
usually inoperable.
IMPACTION OF THE CROP. INGLUVIAL
INDIGESTION.
Gallinaceæ and Palmipeds. Causes; Overfeeding after privation; fermentation;
lack of water; green food in geese and chickens; food containing paralyzing
element. Symptoms; dull; motionless; erect plumes; drooping wings and head;
gapes; ejects liquid from bill; firm cervical swelling. Treatment; manipulation;
incision; surgical precautions. Convalescent feeding.
The cervical dilatation of the œsophagus known as the crop is well
developed in all granivorous birds, (Gallinaceæ, etc.;) and like the
macerating cavities of the ox (first two stomachs) is subject to
overdistension and paralysis. In the palmipeds (ducks, geese) there is
no distinct crop but in its place the cervical portion of the gullet has a
fusiform dilatation, and under given conditions this may be also the
seat of impaction.
Causes. The impaction may result from overfeeding when the bird
has been starved, or when it suddenly gains access to food of a
specially appetizing kind and to which it has been unaccustomed.
The crop like every other hollow viscus is rendered paretic by
overdistension. Then the food undergoes fermentation still further
distending the cavity, affecting the brain by reflex action, and
paralyzing the vagus and its peripheral branches in the lungs, heart,
stomach, liver, intestines, etc. When the food is dry as in the case of
beans, peas, bran, farinas, it may be a simple firm impaction which
the muscular walls of the crop are unable to break up or move
onward. When green food is taken there is often superadded the
additional evil of active fermentation from the great number and
activity of the bacterial ferments contained in it and the soft aqueous
fermentescible nature of the food (See tympany in ruminants).
Dupont states that young geese led out to fresh spring grass may lose
two-thirds of their number in a few hours from such overloading and
that some species of Carex and cynodon dactylon are particularly
injurious. Chickens also gorge the crop with clover, etc. In all such
cases, plants that contain a paralyzing principle like lolium
temulentum, ripening lolium perenne, chick vetch, etc., are to be
specially dreaded. (See Trichosoma Contortum).
Symptoms. There are first dullness and sluggish movements,
followed by indisposition to move, the bird standing in one place
with ruffled feathers and drooping wings, and at intervals, projecting
the head forward with open beak and in some cases a little liquid is
rejected. If the bird is now caught and examined the crop is found to
be firmly distended, and more or less compressible or indentable
according to the nature of the food impacted. In most cases and
especially if the food has been green or aqueous, there is a certain
resiliency from the presence of gas outside the solid impacted mass.
Treatment. This must be in the line of seconding the physiological
efforts of regurgitation which is a normal and common act in birds.
The duck which has gulped a mouse half-way down the cervical part
of the œsophagus will readily disgorge it when he finds it impossible
to pass it further. The carnivorous birds often reject by vomiting the
indigestible debris such as feathers and bones, after all the more
soluble parts have been disposed of in the stomach. The pigeon even
feeds its young by disgorging into their open bills, the semi-digested
food and milk from its crop. Following these indications we must
break up the contents of the crop by manipulation and force them in
small masses upward into the bill and downward to the
proventriculus. The rejection by the bill may be further stimulated by
introducing the finger into the fauces to rouse the reflex active
emesis. Usually the crop can be quickly and satisfactorily emptied in
this way.
When this proves impossible there remains the operation of direct
incision through the walls of the crop and the evacuation of its
contents. This can be done by a pocket knife or even a pair of
scissors. The crop is punctured in its lower part and the incision is
continued upward as far as may be necessary to allow the escape of
the contents. Usually half an inch will suffice. Then the crop is
squeezed so as to press the contents through this opening and it is
emptied by a process of enucleation. If the contents are fibrous it
may be necessary to employ forceps to dislodge the material. The
empty crop may be washed out with tepid water, any food attached
to the raw edges of the wound must be removed and the skin stitched
accurately together. The wound rarely fails to heal by first intention.
To avoid stretching it, the food for a day or two should be restricted
to milk, gruels, or a little soft mash.
Lerein notices jaundice as a sequel of impacted crop, and
recommends treatment by sulphate of soda in the water.
TYMPANITIC INDIGESTION IN THE
RUMEN. BLOATING.
Definition. Susceptible Genera. Causes; gastric paresis, overloading, cold, fear,
exhaustion, poisons, fermentescible food,—new grain, leguminosæ, frosted
vegetables, ruminitis, foreign bodies in rumen, microbian ferments. Symptoms,
abdominal, general. Gases formed under different aliments—carbon dioxide,
marsh gas, hydrogen sulphide, nitrogen, oxygen. Lesions, rupture of rumen or
diaphragm, compression or rupture of liver or spleen, petechiæ, congestion of
lungs and right heart, of cutaneous and cerebral vessels. Prevention, avoid
indigestible and fermentescible aliments, correct adynamic conditions, tonics,
avoid injurious ferments, make alimentary transitions slowly. Treatment, exercise,
bath or douche of cold water, rubbing and kneading, rope round abdomen spirally,
gag in mouth, dragging on tongue, movement of a rope in fauces, probang,
stimulants, antiseptics, alkalies, ammonia, oil of turpentine, oil of peppermint,
alcohol, ether, pepper, ginger, soda, potash, lime, muriatic acid, carbolic acid,
creosote, creoline, sulphites, kerosene, chloride of lime, chlorine, tar, common salt,
hypochlorite of soda, magnesia, eserine, pilocarpin, barium chloride, colchicum,
lard, trochar, Epsom salts, rumenotomy. Treatment of diseased gullet, mediastinal
glands, stomach or intestines.
Definition. The condition is a combination of paresis of the rumen
and gaseous fermentation of its contents. The initial step may be the
paresis or in the more acute forms the fermentation.
Genera susceptible. While all ruminating animals are subject to
this disorder, it is much more frequent in cattle and sheep than in
goats.
Causes. It commences in paresis of the rumen in the weak,
debilitated, convalescent or starved animals which are suddenly put
on rich, and appetizing food. Hence it is common in animals that
break into a cornbin, a store of potatoes, a field of growing corn or
small grain, or that are turned out on green food in early spring.
Cadeac maintains that paresis of the rumen is the essential cause in
all cases, while the nature of the aliments ingested fills a secondary
and comparatively insignificant rôle. According to this view the
torpid stomach can neither relieve itself through regurgitation for
rumination, nor expel through the œsophagus the constantly
evolving gas which therefore distends the viscus to excess. In support
of this view may be adduced the occurrence of tympany through
fatigue, fear, cold, enlarged (tubercular) mediastinal glands pressing
on the gullet and vagus, obstruction of the œsophagus by a solid
body (choking), impaction of a morsel of solid food in the demicanal
of the calf as noticed by Schauber, and the cessation of the normal
vermicular movements of the rumen in connection with
inflammation of its coats, or extensive inflammation elsewhere or
finally of fever. Even in paralysis of the stomach by poisons like lead,
tympany may be a result. Cadeac attributes tympany following the
ingestion of green food wet with a shower, or drenched with dew, of
frosted potatoes or turnips, or of iced water, to the paralyzing action
of the cold on the rumen. This view is manifestly too extreme, as the
bloating occurs often after a warm summer shower, or after the
consumption of potatoes and other roots and tubers which have been
spoiled by frost but which are no longer at a low temperature when
consumed.
Tympany may also start from the ingestion of certain kinds of
food which are in a very fermentescible condition. Green food,
especially if the animal has been unaccustomed to it, is liable to act
in this way. Clover and especially the white and red varieties, lucern
(alfalfa), sainfoin, cowpea and other specially leafy plants, which
harbor an unusual number of microbian ferments, and which
contain in their substance a large amount of nitrogenous material
favorable to the nourishment of such ferments are particularly
dangerous in this respect. All of these are most dangerous when wet
with dew or when drying after a slight shower, partly no doubt at
times by reason of the chilling of the stomach, but mainly because
the ferments have been stimulated into activity by the presence of
abundance of moisture. Drenching and long continued rains are less
dangerous in this respect than the slight showers and heavy dews,
manifestly because the former wash off a large portion of the
microbes, which under a slight wetting multiply more abundantly.
Frosted articles act in a similar way, partly when still cold by the
chilling and paralyzing of the stomach, but cold or warm, by reason
of the special tendency of all frozen vegetables to undergo rapid
fermentation when thawed out. This is true of green food of all kinds
when covered by hoarfrost, of turnips, beets, potatoes, carrots,
apples, cabbage, etc., which have once been frozen, and of frosted
turnips and potato tops, though, in the case of the latter agent, a
narcotic principle is added.
In the case of Indian corn, the smaller cereal grains, and certain
leguminous plants (vetches, tares, peas, beans) which have the seed
fully formed but not yet quite hardened nor ripened, there is the
double action of a paralyzing constituent and an aliment that is
specially susceptible of fermentation.
Inflammation of the rumen, already quoted as a cause, may be
determined by hot as well as cold food, by irritant drugs and poisons,
and by narcotico-irritant and other acrid plants in fodder or pasture.
In the same way the inflammation caused by the introduction of
foreign bodies into the rumen, such as nails, tacks, needles, pins,
wires, knife blades, and masses of hair or wool may at times cause
tympany.
The two main causative factors, of paresis of the rumen on the one
side and of specially fermentescible food and a multiplicity of
microbian ferments on the other, must be recognized as more or less
operative in different cases, and in many instances their combined
action must be admitted. The tympany is the symptom and
culmination of a great variety of morbid causes and conditions, and
its prevention and treatment must correspondingly vary.
Symptoms. The whole left side of the abdomen being occupied by
the rumen, its distension leads to an uniform swelling of that side,
differing from that caused by simple excess of solid ingesta in being
more prominent high up between the last rib and the outer angle of
the ilium, and in giving out in this region a clear tympanitic or
drumlike resonance on percussion. It has also a tense resiliency, like
that of a distended bladder, easily pressed inward by the finger but
starting out to its rotundity the moment the pressure of the finger is
withdrawn. The distension caused by overloading with solids bulges
out lower down, is not resonant but dull or flat when percussed, and
yields like a mass of dough when pressed retaining the indentation of
the finger for some time. The swelling of tympany, when extreme,
rises above the level of the outer angle of the ilium and even of the
lumbar spines on the left side, and if no relief is obtained the right
side may undergo a similar distension.
Auscultation detects an active crepitation over the whole region of
the rumen, finer in some cases and coarser in others, according to
the activity of evolution and the size of the bubbles of gas. The
crepitation is especially coarse and loud in fermentation of green
food, and of spoiled potatoes or other tubers or roots.
In all acute or severe cases, there is anorexia, suspension of
rumination, and the normal movements of the compressed bowels
seem to be largely impaired, though the anus is protruded and a little
semi-liquid fæces or urine may be expelled at intervals. The
breathing is accelerated, short, and labored. The nostrils are dilated,
the nose extended, the face anxious, the eyes bloodshot and the back
arched. Froth may accumulate around the lips, or the mouth may be
held open with the tongue pendent. Sometimes a quantity of gas may
suddenly escape with a loud noise, but without securing permanent
relief. The heart beats are violent and accelerated, the pulse
increasingly small and finally imperceptible, and the visible mucous
membranes are congested and cyanotic. Pregnant females are very
liable to abort.
When the right flank as well as the left rises to the level of the
lumbar spines death is imminent, and this may take place as early as
fifteen or thirty minutes after the apparent onset of the attack. Death
may result from nervous shock, from suffocation, or from the
absorption of deleterious gases, or from all of these combined.
In the less acute cases the animal may live several hours before the
affection terminates in death or recovery. As a rule he stands as long
as he can and finally drops suddenly, the fall often leading to rupture
of the diaphragm or stomach, to protrusion of the rectum, or the
discharge of ingesta by the mouth and nose.
In still slighter cases relief comes through vomiting or more
commonly through frequent and abundant belching of gas, the
swelling of the flanks subsides, rumbling of the bowels may again be
heard, and usually there is a period of diarrhœa.
Gases present. When the rumen is punctured before or after death
so as to give exit to the gas in a fine stream it proves usually more or
less inflammable, the lighted jet burning with a bluish flame. The
usual inflammable ingredients are carbon monoxide, hydrogen
carbide (marsh gas) and hydrogen sulphide, yet the relative
proportion of the gases varies greatly with the nature of the food and
the amount of gas evolved, carbon dioxide being usually largely in
excess. The following table serves to illustrate the variability:

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(eBook PDF) Macroeconomics Fifth 5th

Working with the Model: A Change in

Chapter 6 Search and Unemployment 163

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An Increase in Productivity 186

Part 3 Economic Growth 199

Chapter 7 Economic Growth: Malthus and Solow 200

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Chapter 8 Income Disparity among Countries

Part 4 Savings, Investment, and Government Deficits 267

Chapter 9 A Two-Period Model: The Consumption–Savings

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Chapter Summary 304

Chapter 10 CreditMarket Imperfections: Credit Frictions,

Chapter 11 A Real Intertemporal Model with Investment 334

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The Equilibrium Effects of an Increase in

Part 5 Money and Business Cycles 387

Chapter 12 AMonetary Intertemporal Model: Money,

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Chapter 13 Business Cycle Models with

Chapter 14 New Keynesian Economics: Sticky Prices 449

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Criticisms of Keynesian Models 463

Chapter 15 Inflation:Phillips Curves

Part 6 International Macroeconomics 499

Chapter 16 International Trade in Goods and Assets 500

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A Temporary Increase in Government Expenditure and

Chapter 17 Money in the Open Economy 521

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Part 7 Money, Banking, and Inflation 557

Chapter 18 Money, Inflation, and

Mathematical Appendix 593

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This book follows a modern approach to macroeconomics by building macroeconomic models

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End-of-Chapter Summary and List of Key Terms

Questions for Review

Mathematics and Mathematical Appendix

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Chapter 3 Business Cycle Measurement

Focus on Economic Growth

Focus on Business Cycles

Advanced Mathematical Treatment

What’s New in the Fifth Canadian Edition

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Computerized Test Bank

The PowerPoint Slides

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This chapter frames the approach to macroeconomics that we take in this

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Causes: Alimentary and therapeutic; parasitic and accidental traumatisms;

Causes. This usually arises from injury to the mucous membrane

Causes: nervous disorders or lesions, pharyngeal, œsophagean, or gastric

Causes. This has been noticed as a concomitant of certain diseases

Causes: nervous lesions and disorders; arytenectomy; over distension; stricture;

Causes. This has been noticed in a number of cases in solipeds,

Chapter 8 Income Disparity among Countries

Chapter 9 A Two-Period Model: The Consumption–Savings

Chapter 10 CreditMarket Imperfections: Credit Frictions,

Chapter 12 AMonetary Intertemporal Model: Money,

Chapter 13 Business Cycle Models with

Chapter 15 Inflation:Phillips Curves

Chapter 16 International Trade in Goods and Assets 500

Chapter 18 Money, Inflation, and