Introducing advanced macroeconomics: growth and business cycles

Introducing Advanced Macroeconomics: Growth and Business Cycles, 2nd edition provides students with a thorough understanding of fundamental models in macroeconomics and introduces them to methods of formal macroeconomic analysis. Split into two sections, the first half of the book focuses on macroeconomics for the long run, introducing and developing basic models of growth and structural unemployment. The second half of the book deals with the economy in the short run, focusing on the explanation of business fluctuations. This new edition retains the popular pitch and level established in the 1st edition and continues to bridge the gap between intermediate macroeconomics texts and more advanced textbooks. Key features include: • Fully updated and revised: The empirical material has been updated and new case studies have been added to illustrate the importance of institutions for long run prosperity and to show how business cycle theory can help us understand the dramatic events during the economic crisis which began in 2007. • Empirical motivation and policy orientation: This book reviews the stylised empirical facts to be explained by the models and systematically confronts theoretical predictions with empirical data. The policy implications of the theories presented are highlighted. • Respect for rigour: In the presentation of models, mathematics is used to a degree required for a thorough understanding, but unnecessary technicalities are avoided and a balance between formalism and verbal explanation is maintained throughout.