Wiley-Blackwell The Macroeconomic Debate: Models of the Closed and Open Economy

This textbook, originally published as "Macroeconomics: Models, Debates and Developments" aims to enable readers to understand the current debate amongst macroeconomists by examining the major theoretical controversies that have raged in macroeconomics, since the publication of Keynes' "General Theory". The author uses simple macroeconomic models to show how the controversies have led to the development of new ideas and further debate. The key issues fought over today by New Classical, New Keynesian and Monetarist economists are shown to have their roots in the debate between Keynes and the Classics. This new edition explores how closed economy models can be developed to deal with important open economy issues. Topics covered included Keynes versus the Classics, does fiscal policy really matter, is there a trade-off between inflation and unemployment, and can the governement maintain the exchange rate without losing control of fiscal and monetary policy?