Table of Contents

Part 1 Microeconomic foundations and the basic market-clearing model: work effort, production and consumption - the economics of Robinson Crusoe; the behaviour of households with markets for commodities and credit; the demand for money; the basic market - clearing model; the labour market. Part 2 Inflation: an introduction to inflation and interest rates; money, inflation, and interest rates in the market-clearing model. Part 3 Business fluctuations, unemployment, and economic growth: investment and real business cycles; unemployment; economic growth. Part 4 Government behaviour: government consumption and public services; taxes and transfers; the public debt. Part 5 The international economy: world markets in goods and credit; exchange rates. Part 6 Interactions between the monetary sector and the real sector: financial intermediation; the interplay between nominal and real variables - what is the evidence?; money and business fluctuations in the market - clearing model; the Keynesian theory of business fluctuations.

About the Author

Robert J. Barro is Robert C. Waggoner Professor of Economics at Harvard University and a senior fellow of the Hoover Institution at Stanford University.