Offers students with an understanding of fundamental models in macroeconomics, and introduces them to the methods of formal macroeconomic analysis. This book focuses on macroeconomics for the long run, introducing and develops basic models of growth and structural unemployment. It also deals with the economy in the short run.

PrefaceAcknowledgementsAbout the authorsMacroeconomics for the long run and for the short runBook One: The Long Run Some Facts about Prosperity and Growth Part 1: Basic Theory and Empirics about Prosperity and Growth Capital Accumulation and Growth: The Basic Solow ModelWealth Accumulation and Capital Mobility: The Solow Model for a Small Open EconomyPart 2: Exogenous Growth Technological Progress and Growth: The General Solow Model Education and Growth: The Solow Model with Human Capital Limits to Growth? The Solow Model with Scarce Natural ResourcesPart 3: Endogenous GrowthProductive Externalities and Endogenous Growth R&D-Based Endogenous Growth Part 4: Structural Unemployment Some Facts and Introductory Theory about Unemployment Efficiency Wages and Unemployment Trade Unions and Unemployment Appendix: Table A: Some growth relevant country dataBook Two: The Short RunSome Facts about Business Cycles Part 5: The Building Blocks for the Short-run ModelInvestment and Asset Prices Consumption, Income and Wealth Monetary Policy and Aggregate Demand Inflation, Unemployment and Aggregate Supply Part 6: The Short-run Model for the Closed EconomyExplaining Business Cycles: Aggregate Supply and Aggregate Demand in Action Stabilization Policy: Why Stabilization Policy: How? Stabilization Policy with Rational Expectations The Limits to Stabilization Policy: Credibility and UncertaintyPart 7: The Short-run Model for the Open Economy Aggregate Demand and Aggregate Supply in the Open Economy Chapter 24 The Open Economy with Fixed Exchange Rates Chapter 25 The Open Economy with Flexible Exchange Rates Appendix: Basic regression analysis