This intermediate level textbook concentrates on macroeconomic analysis and is one of the first to focus on imperfectly competitive labour and product markets. The authors present a 'new Keynesian' treatment of macroeconomics. Its key characteristic is the use of wage bargaining and price-setting under imperfect competition, making product and labour market assumptions closer to the real world. These features are fully integrated in both closed and open economy analysis. The book provides access both to the important applied work on unemployment, inflation, and external balances, and to the journal literature on major questions of economic policy and performance, especially in Western Europe, available to undergraduates and non-specialists for the first time.
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