Modern Macroeconomics

Abstract

A textbook that approaches modern macroeconomics through its microeconomic foundations, with an emphasis on financial market connections and policy applications. The modern study and analysis of macroeconomics begins by considering how microeconomic units--consumers and firms--make decisions, and then investigates how these choices interact to yield economy-wide outcomes. This innovative textbook takes this "modern" approach, teaching macroeconomics through its microeconomic foundations. It does so by adopting therepresentative agent paradigm. By modeling therepresentative consumerand therepresentative firm,students will learn to describe macroeconomic outcomes and consider the effects of macroeconomic policies. Unique in its coverage of monopolistic competition, financial markets, and the interaction of fiscal and monetary policy,Modern Macroeconomicsis suitable for use in intermediate undergraduate, advanced undergraduate, and graduate level courses.