Handbook of Macroeconomics surveys all major advances in macroeconomic scholarship since the publication of Volume 1 (1999), carefully distinguishing between empirical, theoretical, methodological, and policy issues. It courageously examines why existing models failed during the financial crisis, and also addresses well-deserved criticism head on.

With contributions from the world's chief macroeconomists, its reevaluation of macroeconomic scholarship and speculation on its future constitute an investment worth making.

Reviews

"Macro is moving fast, partly because of technological progress and new data, partly because of the intellectual shocks triggered by the crisis. This handbook, like its predecessors, gives us the current state of the arts." --Olivier Blanchard, Massachusetts Institute of Technology

"The new volumes in the Handbook of Macroeconomics illustrates both the richness and the enormous breadth of modern research in macroeconomics. The chapters offer in depth surveys of critical areas, new empirical results to guide future researchers, analytical and computational tools for addressing macroeconomic issues, and examples of how these tools can be applied to advance our understanding of aggregate economic behavior. These volumes constitute an important resource for all macroeconomists, one that is certain to be widely used." --Carl E. Walsh, University of California, Santa Cruz

"This Handbook is the ideal starting point to get up to speed quickly on any major topic in Macroeconomics: What we have learned and what are the most pressing open questions." --Pete Klenow, Stanford University

Feature

• Serves a double role as a textbook for macroeconomics courses and as a gateway for students to the latest research
• Acts as a one-of-a-kind resource as no major collections of macroeconomic essays have been published in the last decade

Section 3: Financial-Real Connections 17. Wholesale Banking and Bank Runs in Macroeconomic Modelling of Financial Crises 18. Housing and Credit Markets: Bubbles and Crashes 19. Macro, Money and Finance: A Continuous-Time Approach 20. Housing and Macroeconomics 21. Term Structure of Uncertainty in the Macroeconomy 22. Quantitative Models of Sovereign Debt Crises

Section 4: Models of Economic Growth and Fluctuations 23. Families in Macroeconomics 24. Environmental Macroeconomics 25. The Staying Power of Staggered Wage and Price Setting Models in Macroeconomics 26. Neoclassical Models in Macroeconomics 27. Macroeconomics of Persistent Slumps 28. Macroeconomics and the Labor Market

Section 5: Macroeconomic Policy 29. Challenges for Central Banks?Macro Models 30. Liquidity requirements, liquidity choice and financial stability 31. Understanding Inflation as a Joint Monetary-Fiscal Phenomenon 32. Fiscal Multipliers: Liquidity Traps and Currency Unions 33. What Is a Sustainable Public Debt? 34. The Political Economy of Government Debt