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Product Description This intermediate-level text concentrates on new macroeconomic analysis and is one of the first to focus on labor markets. Presenting a neo-Keynesian treatment of macroeconomics, whose use of wage bargaining and price setting under imperfect conditions make product and labor assumptions closer to the real world, the authors look at important applied work on unemployment, inflation, and external balances. They make available for the first time to undergraduates and non-specialists current literature on major questions of economic policy and performance, especially in Western Europe. Review `We ought to welcome this book. In The Netherlands it will be particularly suitable for doctoral students. After so many textbooks on this level assuming perfect competition, it is important to have this alternative. It presents a coherent view on macroeconomics, built on a clear-cut core.' De Economist `a very clear and well integrated presentation ... I warmly welcome the book and applaud the aims that it seeks to achieve. Overall, I think Carlin and Soskice have succeeded in those aims' British Journal of Industrial Relations `This is a very good text ... representative of the `new Keynesian' approach to macroeconomics ... to be welcomed.' Industrial Relations Journal `A most lucid and effective macroeconomic setting of modern theories of unemployment and inflation - excellent teaching material.' Dr P. Ryan, Cambridge University `good, clear sections with clear understandable explanations of theories, wth relevant applications' Ms L. Garley, Nene College From the Back Cover This book illustrates the genesis of the new approach to macroeconomics in shortcomings of both the 'Keynes-reappraisal' school and the new classical macroeconomics. This intermediate level textbook makes modern micro-based macroeconomics accessible to undergraduates and to economists not working in the field. About the Author Wendy Carlin is at University College London. David Soskice is at Wissenschraft Szentrum, Berlin.