A forthcoming advanced textbook on modern macroeconomics. MIT Press 2019
by George Alogoskoufis
Macroeconomics focuses on the analysis of economies in the aggregate. This forthcoming graduate textbook from MIT Press presents the main macroeconomic theories of economic growth and aggregate fluctuations. It analyzes these theories through a sequence of dynamic general equilibrium models, which are based on intertemporal optimization on the part of economic agents, such as households, firms and the government. It also discusses the role of monetary and fiscal policy in the context of such models.
The intertemporal approach, based on the use of dynamic general equilibrium models, is currently the dominant approach to macroeconomics. This is the approach taken in this text.
The book is addressed to advanced undergraduate as well as first year graduate students of economics. It is also suitable for trained economists who wish to deepen and broaden their knowledge of dynamic macroeconomics. It highlights the potential but also some of the limitations of the modern intertemporal approach.