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

"This remarkable collection belies uninformed critics who assert that modern macroeconomics was wrong footed by the 2007-2009 financial crisis.? Articles in this book prove how, both? before and after that crisis, working? macroeconomists had rolled up their sleeves to study how financial frictions, incentive problems, incomplete markets, interactions among monetary, fiscal, regulatory, and bailout policies, and a host of other issues affect prices and quantities and good economic policies. This is an especially timely book." --Thomas Sargent, New York 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 1: The Facts of Economic Growth and Economic Fluctuation 1. RBC Methodology and the Development of Aggregate Economic Theory 2. The Facts of Economic Growth 3. Macroeconomic Shocks and Their Propagation 4. Macroeconomic Regimes and Regime Shifts 5. The Macroeconomics of Time Allocation 6. "Who Bears the Cost of Recessions? The Role of House Prices and Household Debt" 7. "Allocative and Remitted Wages: New Facts and Challenges for Keynesian Models" 8. Financial and Fiscal Crises

Section 2: The Methodology of Macroeconomics 9. Factor Models and Structural Vector Autoregressions in Macroeconomics 10. Solution and Estimation Methods for DSGE Models 11. Recursive Contracts and Endogenously Incomplete Markets 12. Macroeconomics and Household Heterogeneity 13. Natural Experiments in Macroeconomics 14. Accounting for Business Cycles 15. Incomplete Information in Macroeconomics: Accommodating Frictions in Coordination 16. New Methods for Macro-Financial Model Comparison and Policy Analysis