Summary

This text explains the difference among macro economists on issues of theory and policy while comparing and contrasting modern macroeconomic theory. This edition has been completely updated. It provides a balanced coverage of macroeconomic models, and an aggregate supply/demand framework is used to integrate the discussion of topics throughout. An up-to-date summary of Keynesian position is included, as well as an extensive treatment of monetary policy and coverage of money demand. The framework used is the Mundell-Fleming model and the cases of both imperfect and perfect capital are considered.