ÍNDICE: Preface 1. Motivation for Macroeconomic Models PART 1: THE MACROECONOMIC MODEL 2. Aggregate Demand, Aggregate Supply and Business Cycles 3. Inflation, Unemployment and Monetary Rules 4. Labour Markets and Supply-Side Policies 5. Monetary Policy 6. Fiscal Policy PART 2: CONSUMPTION, INVESTMENT AND MONEY 7. Consumption and Investment 8. Money and Finance PART 3: THE OPEN ECONOMY 9. The open economy in the short run 10. Inflation and Unemployment in the Open Economy 11. Shocks and Policy Responses in the Open Economy 12. Interdependent Economies PART 4: GROWTH 13. Exogenous Growth Theory 14. Endogenous and Schumpeterian Growth PART 5: MICRO-FOUNDATIONS AND POLITICAL ECONOMY 15. New Keynesian Micro-foundations 16. Political Economy PART 6: APPLICATIONS 17. Performance and Policy in Europe, the USA and Japan 18. Unemployment: institutions, shocks and policies