Principles of Macroeconomics 7th Edition Mankiw

https://textbookfull.com/product/principles-of-macroeconomics-7th-
edition-mankiw/

★★★★★ 4.7/5.0 (1746 reviews) ✓ 461 downloads Most Popular

"Superb educational material!" - Anna S.

textbookfull.com

Instant PDF Download

EDUCATIONAL MATERIALS · STUDY SUPPLEMENTS · TESTING RESOURCES

Principles of Macroeconomics 7th Edition Mankiw

TEXTBOOK

Available Formats

■ PDF eBook Study Guide Ebook

EXCLUSIVE 2025 ACADEMIC EDITION – LIMITED RELEASE

Available Instantly Access Library

 Exclusive Picks

Principles of macroeconomics N Gregory Mankiw

Link Product: https://textbookfull.com/product/principles-of-macro
economics-n-gregory-mankiw/

Brief principles of macroeconomics Ninth Edition. Edition

N. Gregory Mankiw
Link Product: https://textbookfull.com/product/brief-principles-of-m
acroeconomics-ninth-edition-edition-n-gregory-mankiw/

Principles of Economics 7th Edition N. Gregory Mankiw

Link Product: https://textbookfull.com/product/principles-of-econo
mics-7th-edition-n-gregory-mankiw/

Macroeconomics 10th Edition N. Gregory Mankiw

Link Product: https://textbookfull.com/product/macroeconomics-1
0th-edition-n-gregory-mankiw/
Principles of Microeconomics N. Gregory Mankiw
Link Product: https://textbookfull.com/product/principles-of-microe
conomics-n-gregory-mankiw/

Principles of Macroeconomics Lee Coppock

Link Product: https://textbookfull.com/product/principles-of-macro
economics-lee-coppock/

Principles of Economics 8th Edition N Gregory Mankiw

Link Product: https://textbookfull.com/product/principles-of-econo
mics-8th-edition-n-gregory-mankiw/

Principles of Microeconomics, Asia-Pacific Edition N.

Gregory Mankiw
Link Product: https://textbookfull.com/product/principles-of-microe
conomics-asia-pacific-edition-n-gregory-mankiw/

Macroeconomics Solution Manual 7th ed 7th Edition Olivier

Blanchard
Link Product: https://textbookfull.com/product/macroeconomics-so
lution-manual-7th-ed-7th-edition-olivier-blanchard/
 This is an electronic version of the print textbook. Due to electronic rights
restrictions, some third party content may be suppressed. The publisher reserves
the right to remove content from this title at any time if subsequent rights
restrictions require it. For valuable information on pricing, previous editions,
changes to current editions, and alternate formats, please visit www.nelson.com
to search by ISBN, author, title, or keyword for materials in your areas of interest.

Important notice: Media content referenced within the product description or the
product text may not be available in the eBook version.
PART 6: THE MACROECONOMICS OF OPEN ECONOMIES
Chapter 12 Open-Economy Macroeconomics:
Basic Concepts A nation’s economic interactions with other nations are
described by its trade balance, net foreign investment, and
exchange rate.
Chapter 13 A Macroeconomic Theory of
the Small Open Economy A long-run model of the small open economy explains the
determinants of the trade balance, the real exchange rate, and
other variables.

PART 7: SHORT-RUN ECONOMIC FLUCTUATIONS

Chapter 14 Aggregate Demand and
Aggregate Supply
Chapter 15 The Influence of Monetary The model of aggregate demand and aggregate supply explains
and Fiscal Policy on Aggregate short-run economic fluctuations, the short-run effects of
Demand monetary and fiscal policy, and the short-run linkage between
real and nominal variables.
Chapter 16 The Short-Run Tradeoff between
Inflation and Unemployment

PART 8: FINAL THOUGHTS

Chapter 17 Five Debates over
Macroeconomic Policy A capstone chapter presents both sides of five major debates over
economic policy.
 Seventh Canadian Edition

macro
PRINCIPLES OF

ECONOMICS

N. Gregory Mankiw
H A R VA R D U N I V E R S I T Y

Ronald D. Kneebone
U N I V E R S I T Y O F C A L G A RY

Kenneth J. McKenzie
U N I V E R S I T Y O F C A L G A RY
 Principles of Macroeconomics, Seventh Canadian Edition
by N. Gregory Mankiw, Ronald D. Kneebone, and Kenneth J. McKenzie

VP, Product and Partnership Photo and Permissions Indexer:

Solutions: Researcher: Edwin Durbin
Anne Williams Julie Pratt
Design Director:
Publisher, Digital and Print Production Project Ken Phipps
Content: Manager:
Anne-Marie Taylor Jennifer Hare Managing Designer:
Franca Amore
Marketing Manager: Production Service:
Christina Koop MPS Limited Cover Design:
Courtney Hellam
Technical Reviewer: Copy Editor:
Norman Smith Kelli Howey Cover Image:
Peter Mather/Getty Images
Content Development Manager: Proofreader:
Katherine Goodes, My Editor Inc. MPS Limited Compositor:
MPS Limited

COPYRIGHT © 2017, 2014 by ALL RIGHTS RESERVED. No part of Library and Archives Canada
Nelson Education Ltd. this work covered by the copyright Cataloguing in Publication Data
herein may be reproduced,
Adapted from Principles of transcribed, or used in any form or Mankiw, N. Gregory, author
Macroeconomics, Seventh Edition, by any means—graphic, electronic, Principles of macroeconomics /
by N. Gregory Mankiw, published or mechanical, including N. Gregory Mankiw, Harvard
by Cengage Learning. Copyright © photocopying, recording, taping, University, Ronald D. Kneebone,
2015, 2012 by Cengage Learning. Web distribution, or information University of Calgary, Kenneth J.
storage and retrieval systems— McKenzie, University of Calgary. —
Printed and bound in Canada Seventh Canadian edition.
1 2 3 4 19 18 17 16 without the written permission of
the publisher. Includes bibliographical references
For more information contact and index.
Nelson Education Ltd., 1120 For permission to use material Issued in print and electronic
Birchmount Road, T Toronto, from this text or product, submit formats.
Ontario, M1K 5G4. Or you can all requests online at www ISBN 978-0-17-659199-1
visit our Internet site at http:// .cengage.com/permissions. Further (paperback).—
www.nelson.com questions about permissions can ISBN 978-0-17-676777-8 (pdf)
be emailed to permissionrequest
@cengage.com 1. Macroeconomics—Textbooks.
2. Macroeconomics—Canada—
Every effort has been made to Textbooks. I. Kneebone, Ronald
trace ownership of all copyrighted D. (Ronald David), 1955–, author
material and to secure permission II. McKenzie, Kenneth J. (Kenneth
from copyright holders. In the James), 1959–, author III. Title.
event of any question arising as
to the use of any material, we will HB172.5.P744 2016 339
be pleased to make the necessary C2016-903262-0
corrections in future printings. C2016-903263-9

ISBN-13: 978-0-17-659199-1
ISBN-10: 0-17-659199-0
 To Catherine, Nicholas, and Peter, my other
T
contributions to the next generation
T our parents and Cindy, Kathleen, and Janetta—
To
thanks for your support and patience
 ABOUT THE AUTHORS

N. Gregory Mankiw is Professor of Economics at

Harvard University. As a student, he studied economics
at Princeton University and MIT. As a teacher, he has
taught macroeconomics, microeconomics, statistics, and
principles of economics. He even spent one summer long
ago as a sailing instructor on Long Beach Island.
Professor Mankiw is a prolific writer and a regular
participant in academic and policy debates. His work
has been published in scholarly journals such as the
Kevin LeBlanc

American Economic Review, Journal of Political Economy,

and Quarterly Journal of Economics, and in more popular
forums such as The New York Times, The Financial Times,
The Wall Street Journal, and Fortune. He is also author of
the best-selling intermediate-level textbook Macroeconomics (Worth Publishing).
In addition to his teaching, research, and writing, Professor Mankiw has been a
research associate of the National Bureau of Economic Research, an adviser to
the Federal Reserve Bank of Boston and the Congressional Budget Office, and
a member of the Educational Testing Service (ETS) test development committee
for the advanced placement exam in economics. From 2003 to 2005, he served as
Chairman of the President’s Council of Economic Advisers.

Ronald D. Kneebone is Professor in the Department of Economics and the

School of Public Policy at the University of Calgary. He received his Ph.D. from
McMaster University. Professor Kneebone has taught courses in public finance
and in macroeconomics from principles through to the Ph.D. level, and he is a
two-time winner of the Faculty of Social Sciences Distinguished Teacher Award
at the University of Calgary. His research interests are primarily in the areas of
public-sector finances and fiscal federalism, but he has recently worked on the
problems of homelessness and poverty reduction. He shared with Ken McKenzie
the Douglas Purvis Memorial Prize for the best published work in Canadian
public policy in 1999. Since 2008, he has been Director of Economic and Social
Policy Research in The School of Public Policy at the University of Calgary.

Kenneth J. McKenzie is Professor in the Department of Economics and The

School of Public Policy at the University of Calgary. He received his Ph.D. from
Queen’s University. Specializing in public economics with an emphasis on taxa-
tion and political economy, Professor McKenzie has published extensively in
these areas. He is the winner of the 1996 Harry Johnson Prize (with University
of Calgary colleague Herb Emery) for the best article in the Canadian Journal of
Economics, a two-time winner of the Douglas Purvis Memorial Prize for a pub-
lished work relating to Canadian public policy (1999 with Ron Kneebone and 2011
with Natalia Sershun), and a Faculty of Social Sciences Distinguished Researcher
Award winner at the University of Calgary. Professor McKenzie has taught
microeconomics and public economics from the principles to the graduate level,
and has received several departmental teaching awards.

vi NEL
 BRIEF CONTENTS

About the Authors vi PART 7 SHORT-RUN ECONOMIC FLUCTUAT

A IONS
AT
Preface xvii
14 Aggregate Demand and Aggregate Supply 310
Acknowledgments xxix
15 The Influence of Monetary and Fiscal Policy
on Aggregate Demand 350
16 The Short-Run Tradeoff between Inflation
PART 1 INTRODUCTION and Unemployment 391
1 Ten Principles of Economics 1
2 Thinking Like an Economist 18
Appendix—Graphing: A Brief Review 35 PART 8 FINAL THOUGHTS
3 Interdependence and the Gains from Trade 46
17 Five Debates over Macroeconomic
Policy 422

PART 2 SUPPLY AND DEMAND: HOW MARKETS WORK Glossary 443

4 The Market Forces of Supply and Demand 62 Index 449
Appendix—The Mathematics of
Market Equilibrium 86

PART 3 THE DAT

ATA
AT
TA OF MACROECONOMICS
5 Measuring a Nation’s Income 90
6 Measuring the Cost of Living 112

PART 4 THE REAL ECONOMY IN THE LONG RUN

7 Production and Growth 128
8 Saving, Investment, and the Financial System 153
9 Unemployment and Its Natural Rate 178

PART 5 MONEY AND PRICES IN THE LONG RUN

10 The Monetary System 206
11 Money Growth and Inflation 230

PART 6 THE MACROECONOMICS OF OPEN ECONOMIES

12 Open-Economy Macroeconomics:
Basic Concepts 256
13 A Macroeconomic Theory of the Small
Open Economy 284

NEL vii
 CONTENTS

About the Authors vi 1-3b Principle #9: Prices Rise When the Government
Preface xvii Prints Too Much Money 13
1-3c Principle #10: Society Faces a Short-Run Tradeoff
Acknowledgments xxix
between Inflation and Unemployment 13
1-4 Conclusion 14
Summary 15
Key Concepts 15
Questions for Review 15
Quick Check Multiple Choice 16
Problems and Applications 16

CHAPTER 2
Thinking Like an Economist 18
2-1 The Economist as Scientist 19
© Lavinia Moldovan
2-1a The Scientific Method: Observation,
Theory, and More Observation 19
2-1b The Role of Assumptions 20
2-1c Economic Models 21
2-1d Our First Model: The Circular-Flow Diagram 21
PART 1 INTRODUCTION 2-1e Our Second Model: The Production Possibilities
Frontier 23
2-1f Microeconomics and Macroeconomics 26
CHAPTER 1 2-2 The Economist as Policy Adviser 26
Ten Principles of Economics 1 2-2a Positive versus Normative Analysis 27
2-2b Economists in Ottawa 27
1-1 How People Make Decisions 2 2-2c Why Economists’ Advice Is Not Always
1-1a Principle #1: People Face Tradeoffs 2 Followed 28
1-1b Principle #2: The Cost of Something Is What You 2-3 Why Economists Disagree 29
Give Up to Get It 4
2-3a Differences in Scientific Judgments 29
1-1c Principle #3: Rational People Think at the
2-3b Differences in Values 30
Margin 4
2-3c Perception versus Reality 30
FYI: The Opportunity Cost of Gasoline 5
1-1d Principle #4: People Respond to Incentives 6 2-4 Let’s Get Going 31
In The News: Even Criminals Respond to Summary 32
Incentives 8 Key Concepts 32
1-2 How People Interact 9 Questions for Review 32
Quick Check Multiple Choice 33
1-2a Principle #5: Trade Can Make Everyone
Problems and Applications 33
Better Off 9
1-2b Principle #6: Markets Are Usually a Good Way
to Organize Economic Activity 9 Appendix Graphing: A Brief Review 35
1-2c Principle #7: Governments Can Sometimes Graphs of a Single Variable 35
Improve Market Outcomes 10 Graphs of Two Variables: The Coordinate System 36
FYI: Adam Smith and the Invisible Hand 11 Curves in the Coordinate System 37
Slope 39
1-3 How the Economy as a Whole Works 12 Graphing Functions 41
1-3a Principle #8: A Country’s Standard of Living Depends Cause and Effect 43
on Its Ability to Produce Goods and Services 12 Problems and Applications 45

NEL ix
 x CONTENTS

CHAPTER 3 4-2 Demand 64

4-2a The Demand Curve: The Relationship between Price
Interdependence and the Gains and Quantity Demanded 64
from Trade 46 4-2b Market Demand versus Individual Demand 66
4-2c Shifts in the Demand Curve 67
3-1 A Parable for the Modern Economy 47 Case Study: Two Ways to Reduce the Quantity
3-1a Production Possibilities 48 of Smoking Demanded 69
3-1b Specialization and Trade 50
4-3 Supply 70
3-2 Comparative Advantage: The Driving 4-3a The Supply Curve: The Relationship between Price
Force of Specialization 52 and Quantity Supplied 70
3-2a Absolute Advantage 52 4-3b Market Supply versus Individual Supply 71
3-2b Opportunity Cost and Comparative Advantage 52 4-3c Shifts in the Supply Curve 72
3-2c Comparative Advantage and Trade 53
4-4 Supply and Demand Together
T 74
FYI: The Legacy of Adam Smith and David Ricardo 54
3-2d The Price of Trade 54 4-4a Equilibrium 74
In The News: Does Free Trade Create Jobs? 55 4-4b Three Steps to Analyzing Changes in Equilibrium 76
In The News: Supply, Demand, and Technology 81
3-3 Applications of Comparative Advantage 56
4-5 Conclusion: How Prices Allocate Resources 81
3-3a Should Sidney Crosby Shovel His Own Sidewalk? 56
3-3b Should Canada Trade with Other Countries? 56 Summary 82
Key Concepts 83
3-4 Conclusion 58 Questions for Review 83
Summary 58 Quick Check Multiple Choice 84
Key Concepts 58 Problems and Applications 84
Questions for Review 58
Quick Check Multiple Choice 59 Appendix The Mathematics of Market
Problems and Applications 59 Equilibrium 86
Problems and Applications 89

Lilyana Vynogradova/Shutterstock.com
© Lavinia Moldovan

PART 2
SUPPLY AND DEMAND:
HOW MARKETS WORK PART 3
THE DATA OF
CHAPTER 4 MACROECONOMICS
The Market Forces of Supply and Demand 62 CHAPTER 5
4-1 Markets and Competition 63
Measuring a Nation’s Income 90
4-1a What Is a Market? 63
4-1b What Is Competition? 63 5-1 The Economy’s Income and Expenditure 91
NEL
 CONTENTS xi

5-2 The Measurement of Gross Domestic Product 93 Questions for Review 126
5-2a “GDP Is the Market Value …” 93 Quick Check Multiple Choice 126
5-2b “… Of All …” 93 Problems and Applications 126
5-2c “… Final …” 94
5-2d “… Goods and Services …” 94
5-2e “… Produced …” 94
5-2f “… Within a Country …” 94
5-2g “… In a Given Period of Time” 95
5-3 The Components of GDP 95
5-3a Consumption 96
5-3b Investment 96

© IGphotography/iStockphoto.com
5-3c Government Purchases 96
5-3d Net Exports 97
Case Study: The Components of Canadian GDP 97
5-4 Real versus Nominal GDP 98
5-4a A Numerical Example 99
5-4b The GDP Deflator 100
Case Study: Real GDP over Recent History 101
Case Study: Foreign Ownership 102
5-5 GDP and Economic Well-Being 104 PART 4
THE REAL ECONOMY
Case Study: Measuring Economic Well-Being
in Canada 105
IN THE LONG RUN
Case Study: International Differences in GDP
and the Quality of Life 106 CHAPTER 7
5-6 Conclusion 107 Production and Growth 128
In The News: Identifying the 1 Percent 108
Summary 108 7-1 Economic Growth around the World 130
Key Concepts 110 FYI: Are You Richer Than the Richest American? 131
Questions for Review 110
Quick Check Multiple Choice 110
7-2 Productivity: Its Role and Determinants 132
Problems and Applications 111 7-2a Why Productivity Is So Important 132
7-2b How Productivity Is Determined 133
FYI: The Production Function 134
CHAPTER 6 Case Study: Are Natural Resources a Limit to Growth? 135
7-3 Economic Growth and Public Policy 136
Measuring the Cost of Living 112
7-3a The Importance of Saving, Investment,
6-1 The Consumer Price Index 113 and Stable Financial Markets 136
6-1a How the Consumer Price Index Is Calculated 113 7-3b Diminishing Returns and the Catch-Up Effect 137
FYI: What Is in the CPI’s Basket? 116 7-3c Investment from Abroad 138
6-1b Problems in Measuring the Cost of Living 116 7-3d Education 139
6-1c The GDP Deflator versus the Consumer Price Index 118 7-3e Health and Nutrition 140
In The News: Promoting Human Capital 141
6-2 Correcting Economic Variables for the 7-3f Property Rights and Political Stability 142
Effects of Inflation 119 7-3g Free Trade 143
6-2a Dollar Figures from Different Times 120 In The News: One Economist’s Answer 144
FYI: The Bank of Canada’s Inflation Calculator 120 7-3h Research and Development 144
Case Study: Mr. Index Goes to Hollywood 121 Case Study: Productivity Slowdowns and
6-2b Indexation 121 Speedups 146
6-2c Real and Nominal Interest Rates 121 7-3i Population Growth 147
Case Study: Interest Rates in the Canadian Economy 123 7-4 Conclusion: The Importance of Long-Run
6-3 Conclusion 124 Growth 149
Summary 125 Summary 150
Key Concepts 125 Key Concepts 150

NEL
xii CONTENTS

Questions for Review 150 9-3 Minimum-Wage Laws 194

Quick Check Multiple Choice 151
Problems and Applications 151 9-4 Unions and Collective Bargaining 195
9-4a The Economics of Unions 195
CHAPTER 8 9-4b Are Unions Good or Bad for the Economy? 196
FYI: Who Earns the Minimum Wage? 197
Saving, Investment, and the Financial
9-5 The Theory of Efficiency Wages 198
System 153
9-5a Worker Health 199
8-1 Financial Institutions in the Canadian 9-5b Worker Turnover 199
Economy 154 9-5c Worker Effort 199
8-1a Financial Markets 155 9-5d Worker Quality 199
FYI: How to Read Stock Tables 157 Case Study: Henry Ford and the Very Generous
8-1b Financial Intermediaries 158 $5-a-Day Wage 200
8-1c Summing Up 159 FYI: Minimum, Efficiency, and Living Wages 201

8-2 Saving and Investment in the National Income 9-6 Conclusion 202
Accounts 159 Summary 202
Key Concepts 203
FYI: Financial Institutions in Crisis 160
Questions for Review 203
8-2a Some Important Identities 161
Quick Check Multiple Choice 203
8-2b The Meaning of Saving and Investment 162
Problems and Applications 204
8-3 The Market for Loanable Funds 163
8-3a Supply and Demand for Loanable Funds 163
8-3b Policy 1: Saving Incentives 165
8-3c Policy 2: Investment Incentives 167
8-3d Policy 3: Government Budget Deficits and Surpluses 168
Case Study: The Accumulation of Government
Debt in Canada 171
FYI: How Large Is Government Debt? 173
8-4 Conclusion 174
Summary 175
Key Concepts 175
Questions for Review 175
Quick Check Multiple Choice 176
Problems and Applications 176

CHAPTER 9
Unemployment and Its Natural Rate 178

© Masterfile
9-1 Identifying Unemployment 179
9-1a How Is Unemployment Measured? 180
Case Study: Labour-Force Participation of Men and
Women in the Canadian Economy 183
9-1b Does the Unemployment Rate Measure PART 5MONEY AND PRICES
What We Want It To? 184
9-1c How Long Are the Unemployed without Work? 185
IN THE LONG RUN
FYI: The Employment Rate 186
9-1d Why Are There Always Some People CHAPTER 10
Unemployed? 187
FYI: A Tale of Two Recessions 189 The Monetary System 206
9-2 Job Search 189 10-1 The Meaning of Money 208
9-2a Why Some Frictional Unemployment Is Inevitable 190 10-1a The Functions of Money 208
9-2b Public Policy and Job Search 191 10-1b The Kinds of Money 209
9-2c Employment Insurance 192 10-1c Money in the Canadian Economy 209
NEL
 CONTENTS xiii

In The News: Why Gold? 210 Case Study: Money Growth, Inflation, and the
FYI: Credit Cards, Debit Cards, and Money 212 Bank of Canada 250
Case Study: Where Is All the Currency? 212 FYI: Total and Core Inflation and the Bank
of Canada’s Inflation Target 252
10-2 The Bank of Canada 213
10-2a The Bank of Canada Act 213 11-3 Conclusion 253
10-2b Monetary Policy 214 Summary 253
Key Concepts 254
10-3 Commercial Banks and the Money Supply 215
Questions for Review 254
10-3a The Simple Case of 100 Percent-Reserve Banking 215 Quick Check Multiple Choice 254
10-3b Money Creation with Fractional-Reserve Problems and Applications 255
Banking 216
10-3c The Money Multiplier 217
10-3d Bank Capital, Leverage, and the Financial Crisis of
2007–09 218
10-3e The Bank of Canada’s Tools of Monetary Control 220
10-3f Problems in Controlling the Money Supply 224
FYI: The Bank of Canada’s Response to the 2007–09
Financial Crisis 224
Case Study: Bank Runs and the Money Supply 225
10-4 Conclusion 226
Summary 227
Key Concepts 227
Questions for Review 227
Quick Check Multiple Choice 228
Problems and Applications 228

CHAPTER 11

Thinkstock
Money Growth and Inflation 230
11-1 The Classical Theory of Inflation 232
11-1a The Level of Prices and the Value of Money 232
PART 6
THE MACROECONOMICS
11-1b Money Supply, Money Demand, and Monetary OF OPEN ECONOMIES
Equilibrium 233
11-1c The Effects of a Monetary Injection 235
11-1d A Brief Look at the Adjustment Process 235 CHAPTER 12
11-1e The Classical Dichotomy and Monetary Open-Economy Macroeconomics: Basic
Neutrality 236
11-1f Velocity and the Quantity Equation 238 Concepts 256
Case Study: Money and Prices during 12-1 The International Flows of Goods and
Hyperinflations 240
Capital 257
11-1g The Inflation Tax 241
11-1h The Fisher Effect 242 12-1a The Flow of Goods: Exports, Imports, and Net
In The News: A Recipe for Economic Disaster 243 Exports 257
Case Study: The Increasing Openness of the Canadian
11-2 The Costs of Inflation 244 Economy 258
11-2a A Fall in Purchasing Power? The Inflation Fallacy 245 In The News: Breaking Up the Chain of
11-2b Shoeleather Costs 245 Production 260
11-2c Menu Costs 246 12-1b The Flow of Financial Resources: Net Capital
11-2d Relative-Price Variability and the Misallocation Outflow 261
of Resources 247 12-1c The Equality of Net Exports and Net Capital
11-2e Inflation-Induced Tax Distortions 247 Outflow 262
11-2f Confusion and Inconvenience 248 FYI: The Current Account Balance 264
11-2g A Special Cost of Unexpected Inflation: 12-1d Saving, Investment, and Their Relationship
Arbitrary Redistributions of Wealth 249 to the International Flows 264
11-2h Inflation Is Bad, but Deflation May Be Worse 250 12-1e Summing Up 265
NEL
xiv CONTENTS

Case Study: Saving, Investment, and Net Capital In The News: The Open-Economy Trilemma 304
Outflow of Canada 266
13-4 Conclusion 306
12-2 The Prices for International Transactions:
T Summary 307
Real and Nominal Exchange Rates 268 Key Concepts 307
12-2a Nominal Exchange Rates 268 Questions for Review 308
12-2b Real Exchange Rates 270 Quick Check Multiple Choice 308
FYI: The Value of the Canadian Dollar 271 Problems and Applications 308
FYI: The Euro 273
12-3 A First Theory of Exchange-Rate
Determination: Purchasing-Power Parity 273
12-3a The Basic Logic of Purchasing-Power
Parity 274
12-3b Implications of Purchasing-Power Parity 274
Case Study: The Nominal Exchange Rate during a
Hyperinflation 276
12-3c Limitations of Purchasing-Power Parity 277
Case Study: The Hamburger Standard 277
12-4 Interest Rate Determination in a Small Open
Economy with Perfect Capital Mobility 278
12-4a A Small Open Economy 279
12-4b Perfect Capital Mobility 279
12-4c Limitations to Interest Rate Parity 279
12-5 Conclusion 281

iStockphoto.com/Devonyu
Summary 281
Key Concepts 281
Questions for Review 282
Quick Check Multiple Choice 282
Problems and Applications 282

CHAPTER 13 PART 7
SHORT-RUN ECONOMIC
A Macroeconomic Theory of the Small FLUCTUATIONS
Open Economy 284
13-1 Supply and Demand for Loanable Funds and CHAPTER 14
for Foreign-Currency Exchange 286
13-1a The Market for Loanable Funds 286
Aggregate Demand and Aggregate
13-1b The Market for Foreign-Currency Exchange 289 Supply 310
13-1c Disentangling Supply and Demand in the Market
14-1 Three Key Facts about Economic
for Foreign-Currency Exchange 291
FYI: Purchasing-Power Parity as a Special Case 292
Fluctuations 311
14-1a Fact 1: Economic Fluctuations Are Irregular
13-2 Equilibrium in the Small Open Economy 292 and Unpredictable 311
13-2a Net Capital Outflow: The Link between 14-1b Fact 2: Most Macroeconomic Quantities Fluctuate
the Two Markets 292 Together 312
13-2b Simultaneous Equilibrium in Two Markets 293 14-1c Fact 3: As Output Falls, Unemployment
Rises 314
13-3 How Policies and Events Affect a Small
Open Economy 295 14-2 Explaining Short-Run Economic
13-3a Increase in World Interest Rates 295 Fluctuations 314
FYI: Negative Values of Net Capital Outflow 295 14-2a The Assumptions of Classical Economics 314
13-3b Government Budget Deficits and Surpluses 297 14-2b The Reality of Short-Run Fluctuations 315
13-3c Trade Policy 299 In The News: The Social Influences of Economic
13-3d Political Instability and Capital Flight 301 Downturns 316

NEL
 CONTENTS xv

14-2c The Model of Aggregate Demand 15-2b The Multiplier Effect 366
and Aggregate Supply 317 15-2c A Formula for the Spending Multiplier 367
15-2d Other Applications of the Multiplier Effect 369
14-3 The Aggregate-Demand Curve 318
15-2e The Crowding-Out Effect on Investment 370
14-3a Why the Aggregate-Demand Curve Slopes 15-2f Open-Economy Considerations 370
Downward 319 15-2g Changes in Taxes 377
14-3b Why the Aggregate-Demand Curve Might Shift 321 15-2h Deficit Reduction 378
Case Study: Housing Wealth 321 FYI: How Fiscal Policy Might Affect Aggregate Supply 379
14-4 The Aggregate-Supply Curve 324 15-3 Using Policy to Stabilize the Economy 379
14-4a Why the Aggregate-Supply Curve Is Vertical 15-3a The Case for Active Stabilization Policy 379
in the Long Run 325 15-3b The Case against Active Stabilization Policy 380
14-4b Why the Long-Run Aggregate-Supply 15-3c Automatic Stabilizers 381
Curve Might Shift 326 15-3d A Flexible Exchange Rate as an Automatic Stabilizer 381
14-4c Using Aggregate Demand and Aggregate Supply Case Study: The Recession of 2008–09 (again) 382
to Depict Long-Run Growth and Inflation 327
14-4d Why the Aggregate-Supply Curve Slopes 15-4 A Quick Summary 384
Upward in the Short Run 329 FYI: Interest Rates in the Long Run and the Short Run 386
14-4e Why the Short-Run Aggregate-Supply
Curve Might Shift 332
15-5 Conclusion 387
Summary 387
14-5 T
Two Causes of Economic Fluctuations 334 Key Concepts 388
14-5a The Effects of a Shift in Aggregate Demand 334 Questions for Review 388
FYI: Monetary Neutrality Revisited 337 Quick Check Multiple Choice 389
Case Study: Big Shifts in Aggregate Demand: Two Problems and Applications 389
Depressions and World War II 337
Case Study: The Recession of 2008–09 339
14-5b The Effects of a Shift in Aggregate Supply 341 CHAPTER 16
FYI: The Origins of Aggregate Demand and Aggregate
Supply 343 The Short-Run Tradeoff between Inflation
Case Study: Oil and the Economy 344 and Unemployment 391
14-6 Conclusion 346 16-1 The Phillips Curve 392
Summary 346 16-1a Origins of the Phillips Curve 392
Key Concepts 347 16-1b Aggregate Demand, Aggregate Supply,
Questions for Review 347 and the Phillips Curve 394
Quick Check Multiple Choice 347
Problems and Applications 348 16-2 Shifts in the Phillips Curve: The Role of
Expectations 395
16-2a The Long-Run Phillips Curve 395
CHAPTER 15 16-2b The Meaning of “Natural” 398
The Influence of Monetary and Fiscal Policy 16-2c Reconciling Theory and Evidence 398
16-2d The Short-Run Phillips Curve 399
on Aggregate Demand 350 16-2e The Natural Experiment for the Natural-Rate
15-1 How Monetary Policy Influences Aggregate Hypothesis 401
Demand 352 16-3 Shifts in the Phillips Curve: The Role of
15-1a The Theory of Liquidity Preference 352 Supply Shocks 403
15-1b The Downward Slope of the Aggregate-Demand
Curve 356 16-4 The Cost of Reducing Inflation 406
15-1c Changes in the Money Supply 359 16-4a The Sacrifice Ratio 406
15-1d Open-Economy Considerations 360 16-4b Rational Expectations and the Possibility
FYI: The Zero Lower Bound 364 of Costless Disinflation 408
Case Study: Why Central Banks Watch the Stock Market FYI: Measuring Expectations of Inflation 409
(and Vice Versa) 365 16-4c Disinflation in the 1980s 409
16-4d The Zero-Inflation Target 411
15-2 How Fiscal Policy Influences Aggregate
In The News: How to Keep Expected Inflation Low 412
Demand 366 16-4e Anchored Expectations 414
15-2a Changes in Government Purchases 366 16-4f The 2008–09 Recession 415

NEL
 xvi CONTENTS

16-5 Looking Ahead 416 17-2 Should Monetary Policy Be Made by an

Independent Central Bank? 425
16-6 Conclusion 418
17-2a Pro: Monetary Policy Should Be Made by an
Summary 419 Independent Central Bank 425
Key Concepts 419 17-2b Con: Monetary Policy Should Not Be Made
Questions for Review 419 by an Independent Central Bank 426
Quick Check Multiple Choice 419
Problems and Applications 420 17-3 Should the Central Bank Aim for Zero
Inflation? 427
17-3a Pro: The Central Bank Should Aim for Zero
Inflation 428
17-3b Con: The Central Bank Should Not Aim for Zero
Inflation 429
FYI: Price-Level Targeting 430
17-4 Should Governments Balance Their
THE CANADIAN PRESS/POOL-Fred Thornhill

Budgets? 431
17-4a Pro: Governments Should Balance Their
Budgets 431
17-4b Con: Governments Should Not Balance Their
Budgets 433
FYI: Progress on Debt Reduction? 435
17-5 Should the Tax
T Laws Be Reformed to
Encourage Saving? 435
17-5a Pro: The Tax Laws Should Be Reformed to

PART 8 FINAL THOUGHTS

Encourage Saving 435
17-5b Con: The Tax Laws Should Not Be Reformed
to Encourage Saving 437

CHAPTER 17 17-6 Conclusion 438

Summary 438
Five Debates over Macroeconomic Questions for Review 439
Policy 422 Quick Check Multiple Choice 439
Problems and Applications 440
17-1 Should Monetary and Fiscal Policymakers Try
T
to Stabilize the Economy? 423
Glossary 443
17-1a Pro: Policymakers Should Try to Stabilize the
Index 449
Economy 423
17-1b Con: Policymakers Should Not Try to Stabilize
the Economy 424

NEL
 PREFACE

As soon as we got our hands on the first U.S. edition of Principles of Macroeconomics,
it was clear to us that “this one is different.” If other first-year economics textbooks
are encyclopedias, Gregory Mankiw’s was, and still is, a handbook.
Between us, we have many years of experience teaching first-year economics.
Like many instructors, we found it harder and harder to teach with each new
edition of the thick, standard texts. It was simply impossible to cover all of the
material. Of course, we could have skipped sections, features, or whole chapters,
but then, apart from the sheer hassle of telling students which bits to read and not
to read, and worries about the consistencies and completeness of the remaining
material, we ran the risk of leaving students with the philosophy that what
matters is only what’s on the exam.
We do not believe that the writers of these other books set out with the intention
of cramming so much material into them. It is a difficult task to put together the
perfect textbook—one that all instructors would approve of and that all students
would enjoy using. Therefore, to please all potential users, most of the books end
up covering a wide range of topics. And so the books grow and grow.
Professor Mankiw made a fresh start in the first U.S. edition. He included all the
important topics and presented them in order of importance. And in the seventh
U.S. edition, he has resisted the temptation to add more and more material. We
have, in adapting the text for Canadian students, taken a minimalist approach:
“If it isn’t broken, don’t fix it!” While the book is easily recognizable as Mankiw’s,
we have made changes that increase its relevance to Canadian students. Some
of these changes reflect important differences between the Canadian and U.S.
economies. For example, the Canadian economy is much smaller and more open
than the U.S. economy, and this fact is explicitly recognized in this edition. Other
changes reflect important institutional differences between the two countries,
including the structure of the tax system and the nature of competition policy.
Finally, the Canadian edition focuses on issues and includes examples that are
more familiar and relevant to a Canadian audience.
We would not have agreed to participate in the Canadian edition if we were
not extremely impressed with the U.S. edition. Professor Mankiw has done an
outstanding job of identifying the key concepts and principles that every first-
year student should learn.
It was truly a pleasure to work with such a well-thought-out and well-written
book. We have enjoyed teaching from the earlier Canadian editions and we look
forward to using the seventh Canadian edition. We hope you do, too.

How the Book Is Organized

To write a brief and student-friendly book, Mankiw considered new ways to
organize familiar material. What follows is a whirlwind tour of this text. This tour,
we hope, will give you a sense of how the pieces fit together.

NEL xvii
xviii PREFACE

Introductory Material
Chapter 1, “Ten Principles of Economics,” introduces students to the economist’s
view of the world. It previews some of the big ideas that recur throughout
economics, such as opportunity costs, marginal decision making, the role
of incentives, the gain from trade, and the efficiency of market allocations.
Throughout the text an effort is made to relate the discussion back to the ten
principles of economics introduced in Chapter 1. The interconnections of the
material with the ten principles are clearly identified throughout the text.
Chapter 2, “Thinking Like an Economist,” examines how economists approach
their field of study, discussing the role of assumptions in developing a theory
and introducing the concepts of an economic model. It also discusses the role of
economists in making policy. The appendix to this chapter offers a brief refresher
course on how graphs are used and how they can be abused.
Chapter 3, “Interdependence and the Gains from Trade,” presents the theory
of comparative advantage. This theory explains why individuals trade with their
neighbours, as well as why nations trade with other nations. Much of economics
is about how market forces coordinate many individual production and
consumption decisions. As a starting point for this analysis, students see in this
chapter why specialization, interdependence, and trade can benefit everyone.

The Fundamental Tools of Supply and Demand

The next chapter introduces the basic tools of supply and demand. Chapter 4,
“The Market Forces of Supply and Demand,” develops the supply curve, the
demand curve, and the notion of market equilibrium.

More Macroeconomics
Our overall approach to teaching macroeconomics is to examine the economy
in the long run (when prices are flexible) before examining the economy in the
short run (when prices are sticky). We believe that this organization simplifies
learning macroeconomics for several reasons. First, the classical assumption of
price flexibility is more closely linked to the basic lessons of supply and demand,
which students have already mastered. Second, the classical dichotomy allows
the study of the long run to be broken up into several more easily digested
pieces. Third, because the business cycle represents a transitory deviation from
the economy’s long-run growth path, studying the transitory deviations is more
natural after the long-run equilibrium is understood. Fourth, the macroeconomic
theory of the short run is more controversial among economists than the
macroeconomic theory of the long run. For these reasons, most upper-level
courses in macroeconomics now follow this long-run-before-short-run approach;
our goal is to offer introductory students the same advantage.
Returning to the detailed organization, we start the coverage of macroeconomics
with issues of measurement. Chapter 5, “Measuring a Nation’s Income,”
discusses the meaning of gross domestic product and related statistics from the
national income accounts. Chapter 6, “Measuring the Cost of Living,” discusses
the measurement and use of the consumer price index.
The next three chapters describe the behaviour of the real economy in the long
run. Chapter 7, “Production and Growth,” examines the determinants of the large
variation in living standards over time and across countries. Chapter 8, “Saving,
Investment, and the Financial System,” discusses the types of financial institutions
in our economy and examines their role in allocating resources. Chapter 9,
“Unemployment and Its Natural Rate,” considers the long-run determinants of
NEL
 PREFACE xix

the unemployment rate, including job search, minimum-wage laws, the market
power of unions, and efficiency wages.
Having described the long-run behaviour of the real economy, the book then
turns to the long-run behaviour of money and prices. Chapter 10, “The Monetary
System,” introduces the economist’s concept of money and the role of the central
bank in controlling the quantity of money. Chapter 11, “Money Growth and
Inflation,” develops the classical theory of inflation and discusses the costs that
inflation imposes on a society.
The next two chapters present the macroeconomics of open economies,
maintaining the long-run assumptions of price flexibility and full employment.
Chapter 12, “Open-Economy Macroeconomics: Basic Concepts,” explains the
relationship among saving, investment, and the trade balance; the distinction
between the nominal and real exchange rate; and the theory of purchasing-power
parity. Chapter 13, “A Macroeconomic Theory of the Small Open Economy,”
presents a classical model of the international flow of goods and capital. The model
sheds light on various issues, including the link between budget deficits and trade
deficits and the macroeconomic effects of trade policies. Because instructors differ
their emphasis on this material, these chapters are written so that they can be
used in different ways. Some may choose to cover Chapter 12 but not Chapter 13,
others may skip both chapters, and still others may choose to defer the analysis of
open-economy macroeconomics until the end of their courses.
After fully developing the long-run theory of the economy in Chapters 5 through
13, the book turns to explaining short-run fluctuations around the long-run
trend. This organization simplifies teaching the theory of short-run fluctuations
because, at this point in the course, students have a good grounding in many
basic macroeconomic concepts. Chapter 14, “Aggregate Demand and Aggregate
Supply,” begins with some facts about the business cycle and then introduces the
model of aggregate demand and aggregate supply. Chapter 15, “The Influence of
Monetary and Fiscal Policy on Aggregate Demand,” explains how policymakers
can use the tools at their disposal to shift the aggregate-demand curve. Chapter 16,
“The Short-Run Tradeoff between Inflation and Unemployment,” explains why
policymakers who control aggregate demand face a tradeoff between inflation
and unemployment. It examines why this tradeoff exists in the short run, why it
shifts over time, and why it does not exist in the long run.
The book concludes with Chapter 17, “Five Debates over Macroeconomic
Policy.” This capstone chapter considers controversial issues facing policymakers:
the proper degree of policy activism in response to the business cycle, the choice
between rules and discretion in the conduct of monetary policy, the desirability
of reaching zero inflation, the importance of reducing the government’s debt, and
the need for tax reform to encourage saving. For each issue, the chapter presents
both sides of the debate and encourages students to make their own judgments.

NEL
 walk-through
PART 2 SUPPLY AND DEMAND: HOW MARKETS WORK

The purpose of this text is

to help students learn the
fundamental lessons of
economics and to show
how such lessons can
be applied to the world in
which they live. T
Toward that

© Lavinia Moldovan
end, various learning tools
CHAPTER

recur throughout the book.

4 The Market Forces
of Supply and Demand

LEARNING In this chapter, you will …

objectives
Chapter Openers Well-designed chapter 1 Learn the nature of a competitive market
2 Examine what determines the demand for a good in a competitive market

openers act as previews that summarize the 3 Examine what determines the supply of a good in a competitive market
4 See how supply and demand together set the price of a good and the quantity sold

major concepts to be learned in each chapter. 5 Consider the key role of prices in allocating scarce resources in market economies

62 NEL

CHAPTER 8 SAVING,
SAVING, INVESTMENT
INVESTMENT,, AND THE FINANCIAL SYSTEM 171

virtuous circle in the late 1990s and early 2000s. This enabled federal election cam-
paigns during the early to mid-2000s to be fought over the choices that a virtuous
circle provides: tax cuts versus spending increases versus debt reduction.
By 2008, the effects of a financial crisis that significantly slowed economic
growth around the world began to be felt in Canadian government budgets. After
12 straight years of surpluses, the federal budget fell into deficit in 2009. At the
time, most analysts believed the economy would require only a few years before
it improved enough to return the budget to surplus. Early in 2016, however, a
new government announced its intention to run large deficits in the hope of
stimulating economic activity. The return to balanced federal budgets now seems
unlikely for some years to come.

case The Accumulation of Government Debt in Canada

study Budget deficits became a chronic problem in Canada only in the mid-
1970s. From 1950 to 1974, the federal government ran budget surpluses
as often as it ran budget deficits. These budget imbalances were generally
small. In 1975, the federal government posted a large deficit and did so in
every year until 1997. Between 1975 and 1997, the federal government accumu-
lated about $550 billion in debt. In 1997, the string of deficits was broken and the
federal government reported a budget surplus of $3.0 billion—the first time in
28 years that the federal government has actually paid down a portion of its debt.
Between 1997 and 2008, the federal government ran a string of surpluses that
enabled it to reduce its debt by over $90 billion. After 2008, however, the federal
government returned to budget deficits. Between 2008 and 2014, the federal gov-
ernment added $166 billion to its net debt.
Figure 8.5 shows the net debt of the federal government and the combined net
debts of the provinces and territories as a percentage of GDP. Government net debt government net debt
is the difference between the value of the financial liabilities and the value of the the difference between the
financial assets it owns. Throughout the 1950s and until 1975, the federal govern- value of government financial
ment’s debt-to-GDP ratio declined. Although the federal government ran budget liabilities and financial assets
deficits during many of these years, the deficits were small enough that the govern-
ment’s debt grew less rapidly than the overall economy. Because GDP is a rough
measure of the government’s ability to raise tax revenue, a declining debt-to-GDP
ratio indicates that the economy is, in some sense, living within its means. By
contrast, in the years following 1975 when the federal government’s budget defi-
cit ballooned, the debt started rising more rapidly than the overall economy. As a
result, the debt-to-GDP ratio quickly increased. On three occasions—1982, 1989, and
Case Studies Economic theory is
1996—the federal government managed to halt the rise in its debt-to-GDP ratio. The
first two efforts managed to halt the rise only temporarily. On both occasions, an useful and interesting only if it can be
economic slowdown caused government spending to increase and tax revenues to
fall so that debt began to accumulate again. The effort initiated in 1996 proved more
successful, and the federal government actually managed to reduce its debt-to-GDP
applied to understanding actual events
and policies. Updated or replaced with
ratio from its high of 73 percent in 1996 to 32 percent in 2009. Unfortunately, as a
result of an economic slowdown that began in 2007, the federal budget returned
to deficit in 2009. This pushed the federal debt-to-GDP ratio up to 37 percent by
2010 (from 32 percent in 2009). By 2014, the debt-to-GDP ratio had stabilized at
36 percent. In 2016, the federal government announced its intention to introduce
significantly larger deficits than planned previously. Most analysts believe that
more current Canadian examples,
despite this, so long as at least modest economic growth can be maintained, the
debt-to-GDP ratio is not likely to rise significantly beyond what it was in 2014. the numerous case studies apply the
NEL

theory that has just been developed.

xx NEL
 Another Random Document on
Scribd Without Any Related Topics
 512 HOUSEHOLD DISCOVERIES the enamel, which is
hardly noticeable, may lead to the decay of the whole interior of the
tooth. And this condition may not be suspected until the crown
happens to be chipped or broken. Hence, if the teeth are sensitive to
cold or to the touch, or if they ache or " grumble " more or less from
time to time, a dentist should be immediately consulted, so that the
cavity may be filled before the nerve is affected. Otherwise the roots
of the nerve may decay and produce ulcers, which will work their
way through the bones of the jaw and the gums and discharge into
the mouth. During these conditions the process of chewing is much
affected, tartar accimiulates on the teeth, and general bad
conditions prevail. Hence the use of toothache remedies is only
advisable when for any reason it is not possible to consult a dentist.
And the fact that they allay the pain, and thtis seem to effect a
temporary cure, should not be allowed to cause the sufferer to lose
sight of the danger signal that means trouble ahead vmless the
cause of the pain is permanently removed. Treatment of Toothache.
— This depends upon the- cause. And the only permanent cure is
the removal of the cause, if possible, by the aid of a good dentist.
Toothache caused by cavities which expose the dentine, but do not
affect the nerve, is usually due to local irritations caused by acids,
sweets, or salt taken into the mouth, by the presence of acid in the
saliva due to indigestion, by the use of the toothbrush, or by
exposure to cold. In such cases a dentist should be consulted and
the tooth filled as soon as possible. But in the mean time various
pain-kUlers mentioned below may be used to relieve or deaden the
pain. Filling the cavities will almost always give immediate relief. If
the neck of the tooth is exposed, mouth washes should be used
containing such substances as bicarbonate of soda, carbonate of
magnesia, and other alkalies, to neutralize the acid that may be
present in the saliva, and suitable washes should be used to
strengthen the gums. Among substances recommended to give
temporary relief in toothache are counterirritants,' such as oil of
cloves or cinnamon, alum, carbolic acid, ammonia; and various
anaesthetics, as opium, belladonna, ether, sulphate of morphia,
chloral hydrate, laudanum, and the like. Many of these are powerful
and dangerous drugs and should be used only with the most
intelligent caution. They should never be used when it is possible to
consult a dentist, and they must not be expected to effect a
permanent cure. First cleanse the cavity, if possible, with a bit of
cotton on the point of a toothpick dipped in peroxide of hydrogen or
a solution of baking soda in warm water, or a solution of boric acid,
listerine, or other antiseptic. Rinse out the cavity with the same
solution by means of a medicine dropper or small syringe, or by
using it as a mouth wash. In using the following powerful substances
be careful that they do not fall into the mouth so as to be
swallowed. TOOIHACHi: BEMSDIES Use the oil of cloves or equal
parts of the oil of cloves and chloroform. Saturate a bit of cotton
with this and crowd into the cavity. Renew frequently. But if the
tooth is ulcerated, saturate the cotton and place it on the gum.
Meantime soak a ^all piece of absorbent cotton in chloroform and
insert it loosely in the ear on the affected side. Renew from time to
time. Care, of course, must be taken, not to be overcome by the
fumes of the chloroform. Or mix 1 dram of finely powdered alum
with 3 drams of nitrous spirit of ether. Apply to the cavity on a piece
of cotton. Or mixl equal parts of salt and alum with just enough
water to dissolve them, saturate a bit of cotton and insert in the
cavity. Renew frequently.
 THE TEETH 513 Or place J ounce of carbolic acid in a glass
bottle and melt by placing the bottle in hot water. Add J ounce of
collodium, saturate a bit of cotton and insert in the cavity, but do not
let this come in contact with the inside of the mouth, as the catholic
acid will burn wherever it touches. Or mi:^ 5 grains of opium, 5
grains of extract of henbane, 3 drams of oil of cloves, 10 grains of
extract of belladonna with powdered pellitory into a stiff paste and
fill the cavity with this. Or saturate a bit of cotton with a solution of
ammonia and insert. Or insert cotton saturated with camphor
dissolved in turpentine. Or, with great care, touch the inside of the
cavity with the point of a pencil of lunar caustic. Protect all but the
point of the caustic by means of a cloth or otherwise, and carefully
hold the lips and face away from the parts while the application is
being made. Or mix 4i ounces of alcohol, 2 drams of camphor, 2
scruples of opium, 3 drams of oil of cloves, i ounce of bruised
pellitory. Let stand a week or 10 days and strain. Rub on the outside
of the face or in very small quantities on the gum, or insert in the
cavity on cotton. Or mix 1 ounce each of ginger, cloves, and
camphor. Grind to powder in a mortar, add 4 ounces of tincture of
opium, 16 ounces of pure soft water, let stand a week or 10 days
and strain. Apply as above. Or dissolve in alcohol 5 grains of opium,
5 grains of camphor, 1 dram of oil of cloves, 1 dram of oil of cajeput.
Apply to the cavity on cotton. Or place in a glass bottle 1 ounce of
creosote and add i dram of sulphate of morphia. Let stand until the
solution is clear, then add 3 ounces of chloroform. Apply to the
cavity on cotton. Or rub to powder in a mortar i dram of chlorate
hydrate, 1 grain of sulphate of morphia, 8 drams of camphor imtil
they liquefy. Add 1 dram of oil of peppermint. Apply on cotton. Or
mix 10 drops each of camphorated oil, carbolic acid," creosote,
chloroform, oil of peppermint, oil of cloves. Apply to the cavity on
cotton. In addition to the above, toothache will usually be relieved
by applying to the face any poultice having the property of retaining
heat, or resting the face on a hot-water bottle, soapstone, or
common red brick covered with flannel. Dental Work. — Teeth
should never be pulled unless it is absolutely necessary. And this will
not often be the case if the warning given by sensitiveness of the
tooth, or by toothache, is heeded in season. The loss of the tooth
usually renders the corresponding tooth on the opposite jaw useless
for chewing. It also impairs proper pronunciation in speech. Always
consult the best dentists available and do not put too much
confidence in the men who advertise cheap or painless dentistry.
When the pulp or nerve of the tooth is affected it should be
deadened and completely removed, and the root canal should be
thoroughly cleaned out. This cannot be done properly without some
pain. And if the operation is painless there is ground for suspicion
that it may not have been thorough. Once the cavity and roots have
been thoroughly cleaned and filled by a competent dentist, all
trouble with that tooth will be at an end. The judgment of a dentist
should be taken as to what sort of filling should be employed in any
tooth. But all cavities should be filled promptly and properly,
otherwise stomach troubles are sure to follow. Artificial Teeth. — The
progress of modern dentistry is nowhere more apparent than in the
cheapness and perfection with which lost teeth can be replaced.
Sometimes when the crown of the tooth is broken, it can be covered
vrfth an artificial crown, and the loss of one or more teeth can
 514 HOUSEHOLD DISCOVERIES sometimes be repaired by
a bridge consisting of several crowns anchored to two or three
adjacent roots. All lost teeth, whether in the front or back part of the
mouth, should be, on the ground of health, replaced at the earliest
possible moment. Artificial teeth should be kept perfectly clean. And
plates should be removed at night and placed in an antiseptic
solution, such as listerine or boric acid. Temporary Pilling for Teeth.
— First cleanse the cavity by using a bit of cotton at the end of a
toothpick. Dip this in an antiseptic solution, as boric acid in water.
Rinse out the cavity with the same, or a solution of peroxide of
hydrogen, by means of a small glass or rubber syringe. Drop a small
piece of gutta-percha into boUing water. Cut off with a penknife
sufficient to fill the cavity and press it in the tooth with an orange
stick or a piece of soft pine wood whittled to convenient size and
shape. After filling the cavity, remove carefully any guttapercha that
may adhere to the outside of the tooth; and fill the mouth with cold
water several times until the gutta-percha hardens. Or melt a small
piece of guttapercha at the end of a wire by moistening in boiling
water or holding over d hot stove or other heated surface, and insert
while warm. Dentists' Amalgam for Filling Teeth. — Gold, 1 part,
mercury, 8 parts, melted together with gentle heat and poured while
melted into cold water. Or dissolve 2J parts of powdered mastic in 1
part of ether and mix to a stiff paste with powdered alum. Or melt
together equal quantities of tin foU and mercury and when cold
enough to bear the hands, knead a small quantity with the fingers
and insert quickly before it hardens. Or melt together 1 part of
cadmium, 2 parts of tin. Allow the resulting alloy to harden, reduce
to filings and add sufficient mercury with gentle heat to make a fluid
amalgam. Squeeze out any excess of mercury through leather.
Knead up the soUd remnant with the fingers and fill the cavity with
this. Or makp a fluid amalgam of either gold or silver with mercury.
Squeeze out the excess of mercury through leather and use the
residue. Or for a quick, cheap, and handy amalgam, mix when
required for use 30 grains of fine zinc filings, 40 grains of mercury.
Or amalgamate with quicksilver 6 parts of zinc, 21 parts of tin, 73
parts of silver. Or melt together 1 part of powdered gold, 3 parts of
silver; add 2 parts of tin, allow to cool and harden ; reduce to fine
filings and mix with an equal quantity of pure mercury when
required for use. Or make into a paste with equal parts of quickly
drying copal and mastic varnish 1 part of gypsum, 1 part of
powdered porcelain, 1 part of iron filings. Or amalgamate 2 parts of
steel filings with 4 parts of quicksilver. Dentists' Nerve Paste. — The
substance used by dentists to Mil the nerve is arsenic in very minute
quantities. Mix 1 part of arsenic with 2 parts of rose pink and apply
on a bit of cotton moistened with creosote. Remove after 3 or 4
hours and wash out the cavity with water containing an antiseptic,
as boric acid. Mix 15 grains of arsenious acid and 10 grains of
sulphate of morphia with creosote to a paste, and apply on cotton;
but this should never be done without having the nerve immediately
removed by a competent dentist. Otherwise the nerve pulp In the
roots of the tooth wiQ decay and will form an ulcer, which wUl work
through the gum and sometimes through the face and continue to
discharge until properly treated. Hence work of this sort should be
intrusted only to a competent dentist.
 CHAPTER XX CANDIES AND CANDY MAKING KINDS OF
CANDIES— BOILING SIRUP FOR CANDY— THE SEVEN DEGREES—
CREAM OR FONDANT — CREAM CANDIES — FRUIT AND NUT
CREAMS— BONBONS— TAFFY AND MOLASSES CANDY FOR CANDY
PULLS— SIRUP CANDIES — PASTILS OR CANDY DROPS — CANDIED
FRUITS, FRUIT AND NUT CANDIES— CARAMELS—KISSES AND
MARSHMAIXOWS— NOUGATS— POPCORN CANDY— LOZENGES—
COUGH CANDIES— TO COLOR AND FLAVOR CANDY— ICES AND
ICING— HONEY AND BEESWAX Candy Making should be taught and
acquired as one of the most useful of womanly accomplishments.
Like every other art that caUs for skill and intelligence, it' has an
educational value. And the universal fondness for sweets renders the
candy maker a popular favorite. Thus the mother who can make
good candy and is fond of practicing her skill, or teaches and
encourages her daughters to do so, will not only make her home
attractive to her own family, but wUl also acquire an enviable
reputation as an entertainer. Then, too, there is a good market in all
parts of the country for first class homemade candies. Even in cities
where the large confectioners' shops seem capable of supplying
every demand, good homemade candies are given preference at the
highest prices; while in small towns and rural districts, where cheap
candies are the rule, the homemade article, if of good quality, will
always find a ready sale. Children may offer a few pounds of
homemade candies for sale at a small booth or table placed, in
summer weather, on the lawn, and in many localities can thus earn a
good many dollars from passers-by. Or after a reputation for the
quality of the product has been acquired. orders may be obtained
from local merchants or from neighbors. When any considerable
amount of candy is made, the best materials will not cost over 15
cents a pound, and prices ranging from SO cents to $1 a pound are
the rule for a high grade domestic article. A candy booth, always
providing the contents are of the best quality, is usually one of the
most profitable features at church fairs, lawn parties, and other
entertainments for the purpose of raising money. Utensils for Candy
Making. — ^The entire outfit of a professional candy maker can be
afforded by anyone. First in order is a suitable surface on which to
pour and work fondant and other candies. A flat or shallow box or
tray, 3 or 4 inches deep and of any convenient size, lined with tin or
zinc, is used by many confectioners. But a marble slab, such as the
top of an old-fashioned center table or bureau, is ideal for this
purpose. It should be used wrong side up. A couple of candy
scrapers or toy hoes like garden hoes are needed to work cream
candy. Or have a carpenter make a spatula or flat scoop of hard
wood, 12 or IS inches long, shaped like a snow shovel, but having a
very thin beveled edge, as shown in 515
 516 HOUSEHOLD DISCOVERIES the illustration. This is
used to lift and scrape the fondant. A good granite or porcelain
double boiler, a broad, tliin-bladed palette knife, a quantity of waxed
paper, a two-tined ' The Entire Ovifit of a Candy Maker.' fork with
which to dip creams and bonbons; these complete the necessary
outfit. A good pair of scales, a suitable measuring cup or graduated
glass should be at hand in the kitchen. And a small stock of fancy
molds or starch prints will be found convenient. Ingredients for
Candy. — These are of three sorts: sugar, fruit, nuts and the like,
perfume or flavoring, and coloring matter. As to sugar, that known as
Confectioners' XXX is the best and is used by confectioners for the
finest grades of imcooked candies. Confectippers' " A " sugar is not
as good, but is sometimes used for cooked candies. Pure granulated
or loaf sugar properly clarified, forms a satisfactory substitute. But if
adulterated sugar is used it will not be possible to get satisfactory
results. The ordinary powdered sugar 'sold by grocers is not usually
properly refined, and in many cases is adulterated. If the scum
which rises is dirty or if the melted sirup has a brownish or purplish
tinge, it is not fit for the finest grades of candy. And even the best
granulated sugar or ordinary powdered sugar is not suitable for
uncooked candies. Hence, if you expect to make candy for sale or
are ambitious to secure the best results, ask your grocer to make a
special order for Confectioners' XXX sugar, which c£|.n be procured
of any large dealer in candy or wholesale grocery house at a slightly
higher price than ordinary powdered sugar, and use this for
uncooked fondant, icing, and the better grades of creams and
bonbons. White sugar must be used for all light-colored candies. But
coffee or dark-brown sugar may be used for caramel, dark-colored
nut candies, taffy or molasses candy that is to be pulled; or for any
candy that is to be colored in dark shades. Measurements for Candy.
— One pint Confectioners' " A " sugar. Confectioners' XXX or
"powdered" sugar equals J of a pound. One teacup or tumbler
equals J a pound. Onfe pini; of brown sugar equals 14 or IS' ounces
; 1 teacup of brown sugar equals about 9 or 10 ounces. Two
tablespoonfuls equal 1 oimce, or 33 tablespoonfuls 1 pound. These
measures are approximate, but are sufBciently accurate for practical
purposes. EIKSS OF CANDIES Among the many sorts of candy
turned out by professional confectioners, certain standard makes or
kinds may be noted which admit of a general description. One
important distinction is between the cooked candies, the basis of
which is the clarified sirup boiled to the required degree, and the
imcooked candies. The secret of uncooked candy consists in using
Confectioners' XXX or other very finely powdered sugar. Ordinary
powdered sugar is not siutable for this purpose, as it will be found if
tested between the thumb and finger to have a rough grain,
whereas the Confectioners' XXX sugar is as fine as starch. Uncooked
candies may be made equal to the finest French cream. They should
be allowed to stand twenty-four hours or more before being eaten.
Among the standard sorts of cooked candies are fondant or cream,
which may be clarified sirup boiled
 CANDIES AND CANDY MAKING 517 to the soft-ball degree
and creamed by dipping or working with a wooden spoon or paddle,
or by beat ing up Confectioners' XXX sugar with white of egg and
water or milk. These fondants are the foundation of chocolate and
other cream candies, and many others. Bonbon is a general name
for fancy candies, the heart or center of which may be made of nuts,
fruits, or any sort of sweetmeats, and afterwards dipped in melted
fondant cither of plain white sugar sirup, or sirup containing
chocolate, coffee, or other flavoring matter, and tinted with various
coloring matters according to taste. Creams and cream candies are
made of simple fondant with the addition of nuts, fruits, or
sweetmeats stirred in, or having the fondant poured over them, or
otherwise. Molasses Candy consists of molasses in place of sugar
sirup boiled down with or without a mixture of sugar or glucose.
Butter-scotch and Taffy may consist of either molasses or sugar sirup
with the addition of butter and flavoring matter. Pastils or Drop
Candy usually consist of simple clarified sirup with a small quantity
of water and flavoring extract. Kisses and Marshmallows are simple
sirup beaten up with the white of egg or gum arable. rruit and Nut
candies are mixtures of various sweetmeats with simple fondant.
Macaroons and Katafias consist of almonds beaten up with simple
sirup and white of egg. Pralines or candied almonds are blanched
almonds coated by immersion in boiling sirup. Candied Truit and
other sweetmeats are made by pouring over them the clarified sirup
boiled to the feather degree. This is afterwards withdrawn, leaving
the sweetmeats coated with sugar in a form which crystallizes after
a while. Caramels are made of hard-baked candy with the addition
of various sweetmeats and flavoring extracts. Degrees for Kinds of
Candy. — The following are general rules as to the state or degree
of sugar boiling best adapted to the different sorts of candy, but
these may be varied more or less by particular recipes ' which
should, of course, be carefully observed: Ordinary Fondant or French
Cream is boiled to the soft ball. Sugar, Cream, or Molasses Candy for
a "candy pull" to the snap or crack. Taffy and Butter-scotch the
same. Pastils or Drop Candy. — Boil as little as possible; the candy
should merely be dissolved. Kisses, Marshmallows, and Macaroons
are not boUed (except French kisses, which are boiled to the
thread), but are beaten up with white of egg and browned in a
baking oven. Sirup for Candied Sweetmeats boiled to the feather or
flake. Pralines boiled to the pearl. Caramels boiled to the caramel or
hard-baked degree. BOILING SISTTF FOS CANBT To Clarify Sugar. —
To make good candy it is first advisable to clarify the sugar by
boiling it to a thin sirup with half its own bulk or more of water and
the addition of the white of egg, gum arable, or gelatin. This
precaution will cause the impurities to rise in a scum, which may be
removed with a skimmer. The resulting clarified sirup is the basis of
all high-grade candies. Similarly to clarify brown or yellow sugar, add
white of egg or a solution of gelatin, isinglass, or gum arable with
water, and boil until the ' impurities rise to the surface. Dissolve i
cupfuls of sugar in 1 of warm water and add the white of 1 egg
beaten up with 1 cupful of cold water. Boil with gentle heat,
removing the scum as fast as it appears.
 518 HOUSEHOLD DISCOVERIES Or dissolve 4 cupfuls of
sugar in 1 cupful of warm water; simmer with gentle heat, and add J
ounce of gum arabic' dissolved in a little boiling water. Remove the
scum with a skimmer as fast as it appears. For white sugars, less of
the white of egg is required, but the same quantity of water should
be used. To clarify loaf sugar, 1 white of egg to every 6 pounds of
sugar is all that wUl be required. But add, when boiling loaf sugar, 1
tablespoonful of lemon juice or vinegar to prevent it from graining.
As the sirup boils, add a little cold water to prevent it boiling over,
and skim as the froth subsides. Do this three or four times, and
strain the whole through cheese cloth. Add flavoring matter. If
desired, after the purified sugar has been removed from the fire. To
Clarify Ilolasses. — To make a fine grade of molasses candy or to
purify molasses so that it may be used in place of sugar for candies,
cooking, and other purposes, take equal parts of molasses and
water, and i part of coarse broken charcoal; as, 24 pounds of
molasses, 34 pounds of water, and 6 pounds of charcoal. Mix and
boil for half an hour over a slow fire. Pour into a large flat pan or vat
and let stand xmtU the charcoal settles to the bottom. Strain off the
clear molasses through a piece of cheese cloth and simmer with
gentle heat untU the water is all evaporated and the molasses has
returned to its proper consistency. Molasses will lose nothing in bulk
by this process, as 24 pounds of molasses will give 24 pounds of.
clarified sirup, from which the finer grades of molasses candy can be
made. To Clarify Uaple Sugar. — To weigh, melt, and clarify maple
sugar, break up the cakes and add enough water according to the
condition of" the sugar — whether hard or soft grain — ^to dissolve.
Place over a slow fire and stir while melting. If the sugar was of a.
soft grain, add 15 pounds of granulated sugar. Or, if a hard grain,
add IS pounds of best light coffee sugar. Boil to a medium baU. Test
by pouring a little in a porcelain-lined saucepan until the grain is
cloudy. Leave a little of the grained sirup in the saucepan from the
last stirring to make the next grain quicker. Pour in buttered molds,
or set the kettle into a tub of ice water to cool and harden. But
observe that maple sugar thus mixed with cane sugar must not be
offered for sale without a statement of the fact that it has been thus
treated. To Boil or to Candy Sugar. — ^The art of candy making is
very ancient, and the process of boiling sugar for candy has been
observed and studied for many generations. Thus it has been
observed that the clarified sirup, as it gradually loses moisture by
evaporation in the course of boiling down, assumes certain stages in
which it is best adapted for use in making different kinds of candies.
For convenience in preparing recipes these stages have been named
and carefully defined, so that with a little attention they may be
noted by anyone. When once observed they will always be
recognized at a glance, and the process of candy making will
become almost as easy for the amateur as it is for the professional
confectioner. Seven different states or degrees are noted, three of
which fall into two different stages. These are called respectively (1)
the lisse or the thread, which may be large or small; (2) the perle or
pearl, either large or small; (3) the souffle or the blow; (4) the
plume or feather; (S) the houlet or ball, large or small; (6) the cassi
or the crack or snap; and (7) the caramel or hard baked. To Test
Sirup. — The method practiced by professional confectioners to test
the state or " degree " of boiling sirup is to dip the tip of the
forefinger and thumb of the right hand into iced water, then into the
boiling sirup, and quickly back into the iced water again. The
operation is much like that of testing a hot flatiron with a wet finger.
If the test is
 CANDIES AND CANDY MAKING 519 made quickly enough,
the ice water will prevent the hot sirup from burning the lingers.
There is, of course, a knack in doing this, but with a little practice it
can be readily acquired. The thumb and forefinger are brought
together in the iced water, to prevent the sirup from running off, and
quickly withdrawn, holding a pinch of sirup between the forefinger
and the thumb. By spreading them, the state or degree of the
boiling sirup can be ascertained. Another method of testing, which
may perhaps be preferred by the beginner in candy making, is to
take out a little of the sirup with a spoon, lower it in a cup of cold
water, and let a drop fall from the edge on the tip of the forefinger.
Or, to dip the forefinger and thumb in iced water, take out a little of
the hot sirup on a small stick or skewer, and test a drop between the
thumb and iinger. Candies that are to be pulled may be tested by
pouring a spoonful of sirup into cold water and observing if it is
brittle enough to break without bending, like a pipestem, otherwise
the boiling must be continued. THE SEVEN DEGSEES To make the
experiment of noting the seven degrees in sugar boiling, crush 1
pound of fine loaf sugar, add 3 gills of water and put it on or boil in a
clean saucepan over a sharp fire. Have at hand a bowl full of iced
water, a suitable skimmer and if desired a small stick or skewer.
Remove the scum as fast as it rises to the surface, and after about 2
minutes by the watch make the first test as above suggested either
by dipping the thumb and forefinger, first into the iced water, then
into the boiling sugar, and back into the iced water again, or by
means of a spoon or skewer. Take great care that the sirup does not
boil over, and stir frequently so that it may not burn. The Xisse or
Thread. — If on separating the thumb and forefinger with a pinch of
sirup between them, a thin, short thread is formed which quickly
snaps', the sugar is in the state known as the "small thread." In a
few seconds more, when the thread can be drawn out to double its
former length without snapping, its state is known as the "large
thread." The Perle or Pearl. — ^After another minute or two longer,
the sugar in boiling wiU form small round bubbles or globules that
look like large pearls. This state is known as the " small pearl." Soon
the pearls will cover the entire surface of the sirup, and this state is
known as the " large pearl." In the pearl state a pinch of sirup may
be drawn out to the full extension of the finger and thumb without
breaking. This is the proper degree for most kinds of candy making.
The Souffle or Blow. — After another minute or two, dip the
skimmer in the sirup and jar it sharply by striking it on the edge of
the pan. Blow through the holes, and if the sirup forms small
bubbles or globules on the reverse side, the sirup is in the state
known as the " blow." The Plume or Feather. — Again dip in the
skimmer, and shake it so as to flirt the sirup from the edges. If it
threads and flies from the skimmer in flakes or hangs from the edge
in strings it is in the state known as the "feather." The Boulet or Ball.
— ^Make the next test with the thumb and finger, or by dropping a
little sirup into cold water. If it can be rolled between the finger and
thumb into a soft, creamy, but not sticky ball, the state is known as
the " soft ball." After a few seconds' more boUing, on testing in the
same manner, it will be found to be in the state known as the "hard
ball." The Casse or the Crack or Snap. — The next test is made with
the thumb and finger, and if the pinch of sirup is brittle enough to
crack or
 520 HOUSEHOLD DISCOVERIES snap, leaving the parts
attached to the thumb and finger dry and hard, it is in the state
known as the " crack." In this state it does not stick to the teeth,
and a spoonful dropped into cold water wiU be hard and very brittle.
This is the state in which candy is ready to be pulled. The Caramel
or Hard Baked. — When the sirup begins to brown, it is in the state
known as "caramel" or "hard baked." It will then give off a pungent
odor and brown rapidly, when it must be at once removed from the
fire, as otherwise it will burn to a black cinder. In this state, if a little
sirup is dropped into cold water it will crackle and snap like glass.
Care must always be taken not to allow the fire to burn up against
the' sides of the saucepan, or the sugar may be burned and
discolored. The above are the definitions of the different degrees in
sugar boiling noted by French confectioners, who are considered the
best in the world. By others the distinctions between the little and
great thread, the small and great pearl, and the soft and hard ball
are less noted; the blow and the feather, or the feather and the ball
are often regarded as identical. Sirup for Candied Sweetmeats. —
Boil down clarified sirup to the feather degree, or 35 degrees by a,
sirup tester. Quickly remove the pan from the fire and set it into a
dish of cold water, iced water, if possible, coming up all around the
sides so as to cool it as quickly as possible. Lay over the top of the
sugar a piece of waxed paper cut to fit the inside of the saucepan.
When entirely cold, stir the sirup over the sweetmeats to be candied.
A special utensil can be obtained for this purpose, having corrugated
tubes at the bottom from which the sirup may be drained off. Or the
sweetmeats may be placed in a smaU basket strainer and put in the
sirup, which may be placed in an earthenware or other
roundbottomed vessel slightly larger in size than the strainer. The
whole should be covered tightly and placed in a refrigerator, cellar, or
the coldest place attainable. A temperature below the freezing point
is desirable. After standing over night, or about eighteen hours in
this temperature, the strainer containing sweetmeats should be lifted
from the sirup (which should be drained off), and without being
removed from the strainer should be placed in a clean vessel and
allowed to dry and complete the crystallization. Sirup for Holds. —
^To prepare a sirup for lead molds or starch prints, boil together to
the soft ball 2 cupfuls of sugar, 1 large tablespoonful of glucose, i
cupful of water. Or test by tangling a yard or more of fine wire in a
mass of loops, dip this in the sirup, lift and blow through them,
when, if the sirup is done, bubbles will be formed and the sirup will
be feathery and fly off in flakes. Now pour on a jnoistened molding
board or on a marble slab to cool. When lukewarm, cream with a
wooden paddle and set away in an earthenware bowl covered with
several folds of wet cloth. Let stand twenty-four hours or more
before using. To use this fondant set the required quantity in an
earthenware bowl in a double boiler over a dying fire and stir
constantly irntU melted. But do not let the fire burn up or the sirup
approach the boiling point, as if it simmers or boUs it will grain. At
this stage add any desired flavoring or coloring matter. Sirup for
Crystals. — Boil 1^ pounds of sugar with i pint of water to the fine
thread, for small crystals, or to the great thread for larger crystals.
Remove from the fire and let stand untU nearly cold. Sprinkle over
the top a little water to dissolve the film which gathers on it. Lay the
sweetmeats to be crystallized in shallow pie tins inclined at a slight
angle, and pour over them sirup from a ladle until they are covered.
Lay on the top of the sweetmeats two or three folds of damp cloth,
to pre 
 CANDIES AND CANDY MAKING 5£1 vent a crust from
forming, and let stand until the sirup crystallizes, which may require
several hours. Drain off the sirup, which may be done by laying on
top of the cloth another pan of similar size to keep the candies in
place, and tilting the vessel to let the sirup escape at the edge. Lay
away the candies to dry, leaving the cloth over them, and sprinkling
it with water until it is quite damp. The remaining sirup may be
preserved and used again for other sweetmeats. When the candies
are dry, hold a cloth tightly to the edges of the pan, turn it upside
down on a smooth sur- , face, and the candies will drop out on the
cloth. They may then be separated and wrapped in paper or boxed.
They must be kept in a cool, dry place. CBEAU OB FOirSAirT To
prepare fondant or cream, which is the foundation of the justly
celebrated French creams and bonbons, the sirup must be removed
from the fire at the soft-baU degree, or just before it is ready to
produce taffy or hard candy. The sure way to determine the right
state is by means of the sugar thermometer. The "soft ball" occurs at
238 degrees. The beginner who has mastered the art of making
good cream or fondant is in possession of the principal secret of
professional candy making, and may turn his or her skill to good
account by making saleable sweetmeats. There are, of course, many
recipes for making fondant both with and without glucose. The latter
makes a somewhat cheaper candy, and if it is readily obtainable, of
good quality, its use in homemade candy is not objectionable. To Boil
Fondant. — To prepare fondant in general, boil the sirup rapidly over
a quick fire to the softbaU degree. Do not stir the sirup while boiling,
as this would cause it to grain. When a drop of the sirup cooled in
cold water can be rolled into a soft creamy, but not sticky, ball it is
done and should be removed immediately from the fire. If on
rubbing a little of the sirup with a wooden spoon against the sides of
the pan it seems soft and creamy it should be allowed to stand until
lukewarm and then creamed, but if by chance it has been boiled too
hard, add a little boiling water, return to the fire, and make a new ■-
test. Cautions on Uaking Fondant. — Never attempt to make fondant
when the air is humid, as in rain or foggy weather, or when there is
a high wind. Select a clear day with a cloudless sky and stiU air or a
gentle breeze. Sirup tends to grain in windy weather, and fondant
cannot be worked properly in wet weather, since the slightest
moisture affects it. Do not add more moisture to the fondant in the
form of flavoring matter or otherwise than is absolutely necessary.
After mixing the sugar and water for fondant, stir until the sugar is
thoroughly dissolved, but do not stir after it is placed on the stove to
boil, otherwise the fondant will grain and it will be necessary to melt
it over again. Do not be discouraged if you do not at first succeed. If
the sirup grains or is too soft, add boiling water, stir until it is
dissolved, place it back on the stove and boil as before. This may be
done a dozen times if necessary. Thus experiment with your first
batch of fondant until you acquire the necessary skill or knack. After
that the art of candy making will come more easily. Oil slightly with
pure olive oil the marble slab, or other surface on which you work.
But use as little oil as possible. Do not let the fondant become too
cold or hard before commencing to work it. Pour it out on the slab in
a rather thin layer so that it will settle in uniform thickness. As soon
as it hardens enough on the edges to be
 522 HOUSEHOLD DISCOVERIES lifted and rolled,
commence to work from the edges in toward the center of the mass.
Do not give the fondant time to harden, but work very briskly,
turning the edges in with the scraper or spatula, or working the hoes
back and forth until the whole gathers into a solid mass which
cannot be readily divided. Then knead with the hands like bread.
Work hard until the fondant acquires the proper consistency. Store
fondant in tightly sealed glass fruit jars. Thus it may be kept
indefinitely. Or to keep it for a few days only, place in an
earthenware bowl and cover with two or three layers of cloths wrung
out so as to be moist but not wet. Let fondant stand twenty-four
hours or more before making centers for creams or bonbons and let
the centers themselves stand for twentyfour hours or more before
dipping. Otherwise they wiU be melted when dipping into the hot
chocolate or other fondant. Again, let the candies stand a day or two
to set before they are packed for use or sale. Do not use more
coloring or flavoring matter than is necessary — ^just enough so
that the tint or flavor can be readily distinguished, is a good rule. Do
not add flavoring matter to fondant until it has been removed from
the fire and is nearly cool. Sprinkle the flavoring over the surface in
the process of creaming and it will be thoroughly worked into the
mass by kneading. To Koll Fondant. — Cut off as many pounds of
fondant, at least 24 hours old, as you need to make candy. Measure
J teaspoonful of flavoring extract or less to each pound of candy and
add to the flavoring extract 1 drop of the appropriate coloring
matter. Roll the fondant out thin on the slab, sprinkle the coloring
matter over it and thoroughly incorporate it by kneading, the same
as when working over bread. Have ready prepared sheets of waxed
paper. And have at h^nd nuts, fruit, or decorations for the candies
you are abOut to make. Cut the fondant Into small pieces and roll
into the desired shape with the fingers or palms. If fruit or nuts are
to be used, add them at once while the cream is moist. Or if the
centers are to be dipped, set them in order on waxed paper and let
stand twentyfour hours more to harden. To Dip Fondant. — If the
chocolate for dipping fondants becomes too thick, add to it a little
cocoanut oil. This is the natural oil of chocolate^ and is, hence, the
most appropriate substance with which to thin it. Do not attempt to
thin it with hot water, as it will immediately cause the chocolate to
grain. Or use fresh, unsalted butter or olive oil. To dip the centers,
use a slender two-tined fork, turn the conical point of the chocolate
to the right, downward, dip under in a half circle, remove it point
first and hold it upright over the chocolate for a moment or two to
drip. Then set it down gently on the waxed paper. Add nuts, fruit, or
decorations, if any, while the chocolate is still damp. Dip bonbons in
the same manner. To Cream Fondant. — When the sirup is done set
it away from the fire and let it stand until about lukewarm. Now
commence to stir with a wooden paddle. Commence to stir round
and round, always in the same direction; keep the sirup away from
the sides of the kettle so that it will not grain or form in lumps.
Presently the edges will commence to show white and dry. The mass
must now be laid on a marble slab or a kneading board, which may
be dusted with fine flour, cornstarch, or Confectioners' XXX sugar,
and kneaded with the hands in the same manner as bread dough
imtU it is of a uniform soft and creamy consistency. Place the mass
of fondant if not required for use in an earthenware bowl and cover
it with several folds of a cloth wrung out so as to be moist but not
wet. It may thus be kept for a number of days, and will only require
to be warmed at the fire or by;
 CANDIES AND CANDY MAKING 523 setting the bowl in a
vessel of boiling water or on a hot soapstone, or on two or three
common bricks previously heated in the oven, to be ready for
immediate use. Any remnant of the fondant which becomes hard
and dry, or a, batch of fondant which has been cooked too much,
may be softened with hot water and reboiled to the proper degree.
Confectioners' Fondant. — The following recipe is that of a
professional confectioner, and the full quantities are given for the
benefit of dealers in candy, grocers, or persons desiring to make
candy in large quantities for sale at a fair, church bazaar, or
otherwise. The quantity of candy here described will require a large
kneading board or vat with low sides; but any smooth surface, as a.
clean kitchen table, will answer. As the mass wiU be too large to be
worked with the hands it is better to take a small garden hoe with a
short handle, which should, of course, be scoured clean for the
purpose. Boil down 20 pounds of fine granulated sugar with 2J
quarts of water to the stiff ball. Remove from the fire and sprinkle on
top 6 pounds of glucose, but do not stir it in. Set back on the fire
and let it boil until the scvun boUs in. Note that the glucose must not
be added until the sugar is boUed to the hard ball, and must not be
stirred, but allowed to boil in of itself. Dust the vat or molding board
with Confectioners' XXX sugar, pour out the mass on this as soon as
the scum has boiled in, and let it cool until you can lay your hand on
it. But it is better to begin a little sooner than to let it get too cold.
Take two short garden hoes or cream scrapers, work it flat and
sprinkle over it rather less than J pint of glycerin. Cream thoroughly
with the hoes or scrapers, and let stand over night before using.
When this fondant is first made it will be rather rough and coarse in
texture, but standing twelve hours or more will give it a uniform fine
texture and it improves with age, never graining or turning stale. If
this recipe is carefully followed, a fine quality of cream for chocolate
drops, cream candies, and other fondants can be made at a very
satisfactory profit. Pondant without Glucose. — Boll rapidly over a
quick fire to the softball degree 6 cupfuls of fine granulated sugar, 3
cupfuls of water, and J teaspoonful of cream of tartar. Or 3 pounds
of granulated sugar, 1 pint of water, and J teaspoonful of cream of
tartar. The addition of cream of tartar prevents the sirup from
graining. Remove from the fire as soon as done, let the mass cool
until lukewarm, and proceed as before. Chocolate Fondant. —
Instead of pure melted chocolate, a fondant containing 2
tablespoonfuls of grated chocolate to each pound of cream may be
used. Place in a bowl, set in a vessel of hot water, 2 tablespoonfuls
of chocolate and when melted add a cupful of clarifie(^ sirup and 1
pound of melted fondant. Stir and mix well. In this chocolate fondant
dip the hearts or centers of creams or bonbons by transfixing . them
with a fork or hatpin and dropping them on waxed or buttered paper
or sheets of tin to harden. Fruits, as cherries, figs, and the like, are
very delicious coated in this way, or mixed nuts dipped and roUed
with French cream and thus coated are also excellent. Bonbon
Fondant. — Prepare any ordinary fondant, but cream it with a
wooden paddle, and do not knead it as for ordinary fondant. Let it
stand twenty-four hours or more in an earthenware bowl covered
with several thicknesses of wet cloth. To dip bonbons heat the
fondant by setting it on a soapstone or in a pan of hot water over
the stove and stirring constantly, but do not allow it to boil. A double
boiler may be used for this purpose. Dip the centers by transfixing
them with a fork or hatpin, and set them to cool on sheets of waxed
paper. This recipe is suitable for all sorts of nuts, fruits, and other
 524 HOUSEHOLD DISCOVERIES sweetmeat centers. The
fondant may be tinted or colored as desired. Uncooked Fondant. —
Beat up the white of egg and mix with the same amount of water by
bulk in an earthenware bowl. Whip in Confectioners' XXX sugar to a
stiff paste, which will stand when molded with the fingers to any
desired shape. Flavor and tint as desired. After molding let the
pieces stand several hours to harden, but make up no more fondant
than is required for immediate use, as it soon hardens. This fondant
may be used as centers for chocolate creams, or for nut or fruit
sweetmeats in place of any of the cooked fondants as desired.
CBEAU CAirDIES Chocolate Creams. — Mold French cream or any of
the fondants into cone-shaped balls with the hands or fingers. Let
them stand over night on waxed paper or a marble slab, or until
they are thoroughly hardened. If they are allowed to stand
twentyfour hours or more all the better. Coating for Chocolate
Creams. — Melt a cake of chocolate in a double boiler, but do not let
it boil. When melted add a lump of paraffin as big as a small walnut,
half as much butter, and a few drops of vanilla. Or melt in a double
boiler a piece of paraffin the size of a hickory nut, a teaspoonful of
lard, and add J pound of chocolate. Stir until melted. If a, thicker
coat of chocolate is desired, add to the melted chocolate to thicken
it a little glycerin or a few drops of linseed oil. Do not attempt to thin
dipping chocolate with water or else it will immediately grain and
harden. To Coat Chocolate Creams. — Place the pan of melted
chocolate in a larger pan of boiling water on » very hot soapstone.
This keeps the chocolate melted. Place the creams on waxed paper
at the left, and a sheet of waxed paper to receive the coated
chocolates at the right. Take up the creams by thrusting them
through with a fork or a hatpin, dip them quickly in the chocolate,
and slip them off on the waxed paper. Or, holding the cream on a
fork or "Dip Them Quickly in the Chocolate. hatpin, pour the melted
chocolate over them from a teaspoon. Let the creams stand twenty-
four hours or more to harden. Chocolate-cream Candy. — ^Melt
together in a double boiler ^ oimce of chocolate scraped fine, 3
ounces of powdered loaf sugar, 1 pint of sweet cream. Bring these
Welcome to our website – the perfect destination for book lovers and
knowledge seekers. We believe that every book holds a new world,
offering opportunities for learning, discovery, and personal growth.
That’s why we are dedicated to bringing you a diverse collection of
books, ranging from classic literature and specialized publications to
self-development guides and children's books.

More than just a book-buying platform, we strive to be a bridge

connecting you with timeless cultural and intellectual values. With an
elegant, user-friendly interface and a smart search system, you can
quickly find the books that best suit your interests. Additionally,
our special promotions and home delivery services help you save time
and fully enjoy the joy of reading.

Join us on a journey of knowledge exploration, passion nurturing, and

personal growth every day!

textbookfull.com