Includes bibliographical references (pages 615-628) and index.

The demand side -- The supply side -- The 3-equation model and macroeconomic policy -- Expectations -- Money, banking and the macro-economy -- The financial sector and crises -- The global financial crisis : applying the models -- Growth, fluctuations and innovation -- The 3-equation model in the open economy -- The open economy : the demand and supply sides -- Extending the open economy model: oil shocks and imbalances -- The Eurozone -- Monetary policy -- Fiscal policy -- Supply-side policy, institutions, and unemployment -- Real Business Cycle and New Keynesian models.

This authoritative new textbook integrates the modern monetary framework, based on the 3-equation model of the demand side, the supply side, and the policy maker, with a model of the financial system. As a result, the authors comprehensively address the limitations of the mainstream macroeconomic model exposed by the financial crisis and the Eurozone crisis.