Macroeconomics

Wendy Carlin is Professor of Economics at University College London and is a Research Fellow of the Centre for Economic Policy Research. She is managing editor of the Economics of Transition and has published widely on macroeconomics, institutions, and transition. David Soskice is Research Professor at Duke University and at the Wissenschaftszentrum Berlin. He is Centennial Professor in the European Institute at the London School of Economics. He is Emeritus Fellow in Economics at University College, Oxford and has held visiting positions at the Australian National University and the universities of Berkeley, Johns Hopkins Bologna, Cornell, Pisa, Trento and Yale. He has published widely in economics, industrial relations, and political science.

• PREFACE; PART 1: THE MACROECONOMIC MODEL; PART 2: CONSUMPTION, INVESTMENT AND MONEY; PART 3: THE OPEN ECONOMY; PART 4: GROWTH; PART 5: MICRO-FOUNDATIONS AND POLITICAL ECONOMY; PART 6: APPLICATIONS

When teaching intermediate macroeconomics in Harvard, I deeply felt that existing textbooks were all lacking: 1) proper microeconomic foundations linking important notions such as the Keynesian consumption function, the investment accelerator, the Phillips curve, the possibility of persistent (involuntary) unemployment, to precise sources of imperfections in the product, labor, or financial markets; 2) a suitable treatment of growth theory that can shed light on observed convergence and divergence patterns across countries and also on how growth policies should be designed in various countries at different stages of development. Being the first comprehensive attempt at filling these gaps, the Carlin-Soskice textbook should be used by any instructor who wants to bring her students to the frontier of modern macroeconomics while at the same time remaining fully accessible to a broad undergraduate audience. Philippe Aghion, Robert C. Waggoner Professor of Economics, Harvard University