Macroeconomic Policy Since the Financial Crisis

Starting from the premise that all models are wrong, but some are useful, Matteo Iannizzotto introduces and explains the working of the various macroeconomic models available for policymaking. Through a clear and critical approach, students are challenged to consider the strengths and weaknesses of each model so that they develop their own critical engagement with macroeconomic policymaking. The inconsistencies and contradictions evident in the real world require the economist to make choices about which models to adopt in certain circumstances and not to rigidly adhere to a single approach. Aimed at second-year macroeconomics students, this book provides a basis for understanding the economy's fluctuations since the Global Financial Crisis brought the previous period of stability, known as the Great Moderation, to an abrupt end.