Includes bibliographical references and index.

1 THE LONG RUN. Production, Prices and the Distribution of Income -- Interest Rates and Investment -- Consumption and the Natural Rate of Interest -- Capital Accumulation and Growth -- Wage-Setting and Unemployment -- Money and Inflation in the Long Run -- 2 THE SHORT RUN. The Interest Rate and Production in the Short Run -- Economic Activity and Inflation in the Short Run -- 3 ECONOMIC POLICY. Monetary -- Policy Fiscal Policy -- 4 THE OPEN ECONOMY. Exports, Imports, and International Financial Markets -- The Open Economy in the Long Run -- The Open Economy in the Short Run -- Exchange Rate Systems and Monetary Union -- 5 BUSINESS CYCLES, POLICYMAKING, FINANCIAL MARKETS. Business Cycles -- Institutions and Economic Policy -- Financial Markets.