Macroeconomic Theory: A Dynamic General Equilibrium Approach

Macroeconomic Theory is the most up-to-date graduate-level macroeconomics textbook available today. This book truly offers something new by emphasizing the general equilibrium character of macroeconomics to explain effects across the whole economy, not just part. It is also the perfect resource for economists who need to brush up on the latest developments.

Michael Wickens lays out the core ideas of modern macroeconomics and its links with finance. He presents the simplest general equilibrium macroeconomic model for a closed economy, and then gradually develops a comprehensive model of the open economy. Every important topic is covered, including growth, business cycles, fiscal policy, taxation and debt finance, current account sustainability, exchange-rate determination, and an up-to-date account of monetary policy through inflation targeting. Wickens addresses the interrelationships between macroeconomics and modern finance and shows how they affect stock, bond, and foreign-exchange markets. While the mathematics needed for this book is rigorous, the author describes fundamental concepts in a way that helps make the book self-contained and easy to use. Accessible, comprehensive, and wide-ranging,Macroeconomic Theory will become the standard text for students and is ideal for economists, particularly those in government, central and commercial banking, and financial investment.

• The most up-to-date macroeconomics textbook available today
• Web-based exercises with answers (June 2008)
• Emphasis on general equilibrium macroeconomics addresses the whole economy
• Latest advances in macroeconomics covered fully and completely
• Gives up-to-date account of monetary policy
• Covers modern finance
• Extensive mathematical appendix for at-a-glance easy reference

"There are very few good textbooks on the dynamic general equilibrium approach to macroeconomics;Macroeconomic Theory fills a big void and provides a comprehensive and integrated approach to the subject that covers both real and monetary models. Professor Wickens develops a series of topics, beginning with real models of the economy and proceeding through growth, fiscal policy, financial models, and the modern approach to monetary economies. Each topic begins with theoretical background and proceeds to practical applications. The level is appropriate for masters or advanced undergraduate students and is a welcome addition to the field that is likely to be widely adopted."--Roger E. A. Farmer, University of California, Los Angeles

"A most welcome graduate (or advanced undergraduate) textbook in macroeconomics. The book is well-written and the text is effectively organized and progresses in a natural and easy-to-follow way. The text offers a mathematical approach that is easily accessible to the students. The technical level is sufficiently detailed to allow students to understand the role of the underlying assumptions and how the models work, and yet it avoids unnecessary technicalities and sidetracks. As an extra bonus, it offers a treatment of financial aspects which are often neglected in macro textbooks."--Torben M. Andersen, University of Aarhus, Denmark

"This is an innovative graduate textbook that develops much of modern macroeconomics in the framework of stochastic general equilibrium models. The book is especially good for its integration of macro and finance."--Christopher Pissarides, London School of Economics and Political Science

"Wickens's text provides a tremendous introduction to modern macroeconomics. The coverage of material is thorough. The writing is clear and lively. The mathematics is sufficiently detailed without being overly technical, and the mathematical appendix helps keep the text largely self-contained. Intuition behind key results is provided beautifully throughout. Having worked through the text, students will be well-equipped for a journey toward the macroeconomics frontier."--David N. DeJong, University of Pittsburg

"This is a first-rate book that definitely helps fill a surprising lacuna in graduate macro teaching."--Andrew Scott, London Business School

"his book provides an integrated, self-contained, and accessible exposition of modern macroeconomic theory. Particular strengths include coverage of macroeconomic approaches to asset pricing and the analysis of monetary and fiscal policies. It is an excellent textbook for students in masters and PhD courses and an excellent reference for professional economists."--Philip Lane, Trinity College Dublin