Macroeconomics

Macroeconomics offers a modern and comprehensive introduction to the tools and methods that define contemporary graduate training in the field. Written for first-year PhD students and advanced MA/MS students, the book provides a rigorous yet accessible foundation in dynamic optimization, recursive methods, competitive equilibrium, stochastic modelling, and welfare analysis. It emphasizes clarity and intuition, guiding readers through the logic of intertemporal decision-making that underlies modern macro theory.

A key feature of the text is its explicit connection to data. Throughout the book, theory is used to interpret empirical patterns, illustrating how macroeconomic models help us understand real-world behavior and policy-relevant facts. Quantitative and computational tools are integrated throughout to show how models are taken to the data.

The book develops frameworks with heterogeneity and frictions, including incomplete markets, borrowing constraints, labor-market search frictions, unemployment, financial frictions, and firm dynamics. These elements highlight how differences across households and firms, as well as imperfections in markets, shape aggregate outcomes.

Building on these foundations, the text applies macroeconomic tools to consumption, savings, labor supply, unemployment, economic growth, business cycles, fiscal and monetary policy, inequality, and international macroeconomics. Combining rigor, intuition, and empirical relevance, this book serves as both a core graduate resource and a long-term reference for modern macroeconomic analysis.

• Format: Hardcover
• Language: English
• ISBN: 0197836011
• ISBN13: 9780197836019
• Release Date: November 2026
• Publisher: Oxford University Press
• Length: 928 Pages