Nils Gottfries is a Professor of Economics at Uppsala University, Sweden and former editor of The Scandinavian Journal of Economics. He has published extensively in journals including the QJE, JPE, EJ, EER. Most of his research has been concerned with the microeconomic foundations of macroeconomics, particularly the theory of the supply side: prices, wages, and unemployment. He was a member of the Swedish commission on the EMU. He has been teaching macroeconomics regularly at the intermediate and graduate levels.

Nils Gottfries's thoughtful, consistent and lucid exposition breathes fresh air into a macroeconomics textbook. It balances descriptive realism with conceptual coherence judiciously, and its application of principles to the experiences of many countries over many decades is very welcome.

• IntroductionPART I: THE LONG RUN Production, Prices and the Distribution of IncomeInterest Rates and InvestmentConsumption and the Natural Rate of InterestCapital Accumulation and GrowthWage Setting and UnemploymentMoney and Inflation in the Long RunPART II: THE SHORT RUN The Interest Rate and Production in the Short RunEconomic Activity and Inflation in the Short RunPART III: ECONOMIC POLICY Monetary PolicyFiscal PolicyPART IV: THE OPEN ECONOMY Exports, Imports, and International Financial MarketsThe Open Economy in the Long RunThe Open Economy in the Short RunExchange Rate Systems and Monetary UnionPART V: BUSINESS CYCLES, POLICYMAKING, FINANCIAL MARKETS Business CyclesInstitutions and Economic PolicyFinancial Markets.

Nils Gottfries is a Professor of Economics at Uppsala University, Sweden and former editor of The Scandinavian Journal of Economics. He has published extensively in journals including the QJE, JPE, EJ, EER. Most of his research has been concerned with the microeconomic foundations of macroeconomics, particularly the theory of the supply side: prices, wages, and unemployment. He was a member of the Swedish commission on the EMU. He has been teaching macroeconomics regularly at the intermediate and graduate levels.

Nils Gottfries's thoughtful, consistent and lucid exposition breathes fresh air into a macroeconomics textbook. It balances descriptive realism with conceptual coherence judiciously, and its application of principles to the experiences of many countries over many decades is very welcome.

• IntroductionPART I: THE LONG RUN Production, Prices and the Distribution of IncomeInterest Rates and InvestmentConsumption and the Natural Rate of InterestCapital Accumulation and GrowthWage Setting and UnemploymentMoney and Inflation in the Long RunPART II: THE SHORT RUN The Interest Rate and Production in the Short RunEconomic Activity and Inflation in the Short RunPART III: ECONOMIC POLICY Monetary PolicyFiscal PolicyPART IV: THE OPEN ECONOMY Exports, Imports, and International Financial MarketsThe Open Economy in the Long RunThe Open Economy in the Short RunExchange Rate Systems and Monetary UnionPART V: BUSINESS CYCLES, POLICYMAKING, FINANCIAL MARKETS Business CyclesInstitutions and Economic PolicyFinancial Markets.

Nils Gottfries is a Professor of Economics at Uppsala University, Sweden and former editor of The Scandinavian Journal of Economics. He has published extensively in journals including the QJE, JPE, EJ, EER. Most of his research has been concerned with the microeconomic foundations of macroeconomics, particularly the theory of the supply side: prices, wages, and unemployment. He was a member of the Swedish commission on the EMU. He has been teaching macroeconomics regularly at the intermediate and graduate levels.

Nils Gottfries's thoughtful, consistent and lucid exposition breathes fresh air into a macroeconomics textbook. It balances descriptive realism with conceptual coherence judiciously, and its application of principles to the experiences of many countries over many decades is very welcome.

• IntroductionPART I: THE LONG RUN Production, Prices and the Distribution of IncomeInterest Rates and InvestmentConsumption and the Natural Rate of InterestCapital Accumulation and GrowthWage Setting and UnemploymentMoney and Inflation in the Long RunPART II: THE SHORT RUN The Interest Rate and Production in the Short RunEconomic Activity and Inflation in the Short RunPART III: ECONOMIC POLICY Monetary PolicyFiscal PolicyPART IV: THE OPEN ECONOMY Exports, Imports, and International Financial MarketsThe Open Economy in the Long RunThe Open Economy in the Short RunExchange Rate Systems and Monetary UnionPART V: BUSINESS CYCLES, POLICYMAKING, FINANCIAL MARKETS Business CyclesInstitutions and Economic PolicyFinancial Markets.