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Designed for advanced undergraduates in economics, this new text provides an up-to-date analysis of the practice and theory of monetary policy and discusses key models that tie in with contemporary research and policy.

The transmission mechanism of monetary policy is given particular emphasis and the book discusses the behaviour of a number of central banks, in particular the Bank of England, the European Central Bank and the Federal Reserve. The worldwide credit crunch and subsequent recession and non-conventional monetary policies such as quantitative easing are also given...

A clear and rigorous guide to the principles and mechanisms of austerity economics, which offers a balanced point of reference for anyone keen to understand the economic thinking behind key policy decisions in the wake of the financial crisis.