Includes bibliographical references and index.

A tour of the world -- A tour of the book -- The goods market -- Fin ancial markets -- Goods and financial markets: the IS-LM model -- The I S-LM model in an open economy -- The labour market -- Putting all marke ts together: the AS-AD model -- The natural rate of unemployment and th e Phillips curve -- Inflation, activity and nominal money growth -- The facts of growth -- Saving, capital accumulation and output -- Technolo gical progress and growth -- Expectations: the basic tools -- financial markets and expectations -- Expectations, consumption and investment - - Expectations, output and policy -- Economic policy in an open economy -- Exchange rate regimes -- The crisis of 2007-2010 -- High debt -- Hi gh inflation -- Policy and policy makers: what do we know? -- Monetary and fiscal policy rules and constraints -- European economic and moneta ry integration -- The euro: the ins and the outs.