Summary

This is a standard text and starting point for graduate macro courses that helps to lay the groundwork for students doing research in macroeconomics and monetary economics. A series of formal models are used to present and analyze macroeconomic theories, and these are supplemented by examples of relevant empirical work that illustrate the ways in which the theories can be applied and tested. One chapter focuses on fiscal policy and budget deficits and others concentrate on monetary-policy rules, the environment and long-run growth, and the cyclical behaviour of the real wage.