This text offers students a complete look of the field of economic policy. The Second Edition provides a comprehensive overview without a strict mathematical emphasis, making it accessible to students of political science, public policy, and business. Organized around the theme of equity versus efficiency in economic decisions, the Second Edition examines the history of economic policy, making extensive use of historical materials.

The text begins with an overview of economic policy, then examines the key players in policymaking, including Congress, voters, the Federal Reserve, and the president. Aided by key terms and concepts throughout the text, students gain solid insights into a wide variety of economic policies, including macroeconomics; tax and budget policy; and regulatory, distributive, and international economic policies.

• New! The Second Edition includes the most recent scholarship and events, including analysis of the projected budget surplus and proposals for spending it, and the recent successes of organized labor.
• New! A rewritten chapter on international economic policy includes more coverage on international monetary policy.

1. Politics and the Economy: Basic Themes
2. Patterns of Change in the U.S. Economy and Economic Policy
3. The Political-Economic Culture of the United States
4. Extragovernmental Actors and Economic Policy I: The Business Sector
5. Extragovernmental Actors and Economic Policy II: Labor and the Postmaterial Challenge
6. Government Institutions Responsible for Economic Policy
7. Generating Government Revenue: Taxes
8. Managing the Macroeconomy I: Fiscal Policy and the Budget
9. Managing the Macroeconomy II: Monetary Policy, Elections, and Political Business Cycles
10. Regulatory Policy I: Regulation in Theory and Practice
11. Regulatory Policy II: From Regulation to Deregulation
12. The Politics of Distributive Economic Policy
13. International Economic Policy
14. Economic Policymaking in the United States