Publisher's Synopsis
Prices, Interest Rates and Aggregate Output is an introduction to macroeconomic theory and policy. It provides the background of numerous issues that are of current importance. Although its primary purpose is to serve as a resource for undergraduate students, it will also be useful to other readers.
Despite being an introduction to the subject, its approach is not superficial, and complex issues are not ignored.
Theory is related to practical issues. Particular attention is devoted to open-economy theory and the international constraints on the domestic economy. As is usual in economic matters, the conclusions are frequently tentative. Economic theory does not always provide answers. It does, however, encourage people to ask useful questions.
