Product Description

The distinctive feature of this book is that it provides a unified framework for the analysis of short- and medium-run macroeconomics. This gives students a model that they can use themselves to understand a wide range of real-world macroeconomic behaviour and policy issues. The authors introduce a new graphical model (IS/PC/MR) based on the 3-equation New Keynesian model used in modern macroeconomics. The three equations are * the IS curve * the Phillips curve and * an interest rate-based monetary policy rule. The use of a common framework throughout for closed and open economies helps readers develop the economic intuition with which to address a diversity of macroeconomic problems. Applied chapters show how the models can be used to analyse performance in OECD economies over the past twenty-five years. The chapters on growth present an in-depth coverage of the Solow-Swan, endogenous and Schumpeterian models that allow the reader to understand how these approaches can be used to answer the big questions of growth: why some countries are rich and others, poor; why some catch up and others do not. Since the book is based on the mainstream 3-equation model used at the research frontier, the book gives students the economics background necessary for accessing advanced macroeconomics. It is also designed to appeal to graduate students, non-specialists in macroeconomics, professional economists and those from related disciplines who want a guide to the complexities of modern macroeconomics and to understand contemporary policy debates. Online Resource Centre For lecturers: password-protected solutions and diagrams from the text. For students: exercises and checklist questions.

Product Details

• Amazon Sales Rank: #11767 in Books
• Published on: 2005-12-15
• Original language: English
• Number of items: 1
• Binding: Paperback
• 852 pages

About the Author
Wendy Carlin is Professor of Economics at University College London and is a Research Fellow of the Centre for Economic Policy Research. She is managing editor of the Economics of Transition and has published widely on macroeconomics, institutions, and transition.

Customer Reviews

Excellent, but proceed with caution
There's no doubting that this is a thorough text excellently written, covering all the main points. The only problem with it is is it's New Keynesian bias. For example, it fleetingly dismisses the Sargent and Wallace Policy ineffectiveness Proposition without really explaining why one might do so, and subsequently does not explore Fisher's critique. Definitely a must for anyone with an interest in macroeconomics, but this should be one of a "portfolio" of texts on the subject.

A great book
I like to read books on intermediate and upper-level intermediate macroeconomics. I have worked out excellent texts like Blanchard, Burda-Wyplosz, Dornbusch-Fischer-Startz, Williamson, Mankiw, Sachs-Larraín, etc...But this book by Carlin-Soskice is special. It's a very original and modern work that deals with New Keynesian Macroeconomics, that is, the school of macroeconomics that considers prices and wages to be sticky, contrary to the neoclassical, the real business cycle school (RBC) which regards them as fully flexible .
In this book you will find chapters where the 3-equation model is developed. Instead of using the traditional IS-LM model to account for the way the authorities utilizes the fiscal and monetary policies to influence the economy, the authors show how the short run is better reproduced by using a model that incorpores a IS curve, a Phillips curve (PC) and a Monetary Rule(MR)equation. Moreover, forget running into the neoclassical labour market if you study this textbook. You will just see it as a comparison with the imperfect competition model

Clarity in Macroeconomics
This is the clearest Macroeconomics book you will find. I have been studying it from drafts (as have four or five year groups previous to me it seems) for my Macroeconomics course; better than Blanchard, Mankiw, and all the rest, you will enjoy this book. The theory follows with no gaps- it is logical, yet models the real world in a way that is very satisfying compared to previous approaches. The 'assumptions' are not quite so hidden and not quite so ridiculous and previous economic theory, and little is left unexplained. It is particularly satisfying the wy they walk you through the construction of each model, all with micro-economic foundations which explicitly set out the assumptions about behaviour which drive the larger model.

It will become the classic statement of New Keynesianism, the new academic tradition in economics, which emphasises wage rigidity in the conduct of inflation-busting and monetary policy.

If you have been using the IS-LM model beware; this book signals its replacement with the 3 equation model IS-PC-MR combining changes in inflation with a reaction function for monetary policy. This book will become a standard text across universities from Oxford (where I'm studying) to LSE, Harvard and beyond. Buy it.