"This is a superb book! It contains a rigorous treatment of the New-Keynesian model combined with illustrative examples and interesting policy discussions. Students will find the book well-written and easily accessible.

-Fredrik Andersson, Lund University, Sweden

"This book is an excellent and innovative new textbook for intermediate macroeconomics, where conventional macroeconomics is explained with a deeper emphasis on the role of microfoundations. This allows students to be exposed to modern macroeconomic analysis in a rigorous yet still accessible way. The material is up-to-date with the inclusion of recent economic events, and the text offers very useful examples.

-Gianluigi Vernasca, University of Essex, UK

"What is particularly appealing is that the book succeeds in joining together short- and long-run theory in the same overall model framework based on imperfect competition with wage and price setting market participants.

-Christian Groth, University of Copenhagen, Denmark