Publisher's Synopsis
Written by one of the leading macroeconomic theorists in the world, this volume takes the modern equilibrium or marketing clearing approach to analyzing and explaining macroeconomic activity consistently using real-world data to build a macroeconomic model that is internally coherent and consistent with microeconomic theory. Covering the frontiers of macro research the text provides a basis for applying the marketing clearing approach to international topics. Chapters include: coverage of international borrowing lending; shifts in terms of trade; flexible and fixed exchange rates; recent behaviour of real exchange rates; and fiscal policy in the world economy.
