This insightful book presents topics in applied dynamic macrotheory for closed and open economies. The authors give an advanced treatment of macroeconomic topics such as the Phillips curve, forward and backward looking behavior, open economy macrodynamics, structural macroeconometric model building as well as the empirics of Keynesian oriented macro models. The dynamics of open economies in the context of interacting two country models are treated as well.

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This book presents topics in applied dynamic macrotheory for closed and open economies. The authors give an advanced treatment of macroeconomic topics such as the Phillips curve, forward and backward looking behavior, open economy macrodynamics, structural macroeconometric model building as well as the empirics of Keynesian oriented macro models. They start from the closed economy and consider open economies for fixed and flexible exchange rate systems with free international capital flows later on. The dynamics of open economies in the context of interacting two country models are treated as well. The macrofounded approach extends and integrates non-market-clearing traditions in macrodynamics. It is compared to New Keynesian approaches which are generally rigorously microfounded, but often neglect to study macroeconomic feedback mechanisms (that may be stabilizing or destabilizing).

The chapters - though representing a coherent whole - are self-contained and can be used independently of each other.

Tired of RAIOM (Rational Agent Intertemporally Optimizing Model)? Then this is the book for you, a book on macroeconomics in the Keynesian (without any New-, Post-, Neo-, or other prefix) tradition. Fan of RAIOM? Then this is the book for you, it shows how it is possible to study dynamics without jumping on stable arms (or manifolds). A bonus is the econometric study of the theories set forth by the authors. All (macro)economists should read this book.
Professor Giancarlo Gandolfo, University of Rome "La Sapienza"

... The authors succeed in providing substantial insight into macroeconomic models. Both the models and the analysis of actual references cited are alone worthy of attention. This text is worthy of substantial effort to absorb and master its insights; not a book to be neglected or casually read.
Professor James B. Ramsey, New York University

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