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Blocking out, turning a blind eye, shutting off, not wanting to know, wearing blinkers, seeing what we want to see ... these are all expressions of 'denial'. Alcoholics who refuse to recognize their condition, people who brush aside suspicions of their partner's infidelity, the wife who doesn't notice that her husband is abusing their daughter - are supposedly 'in denial'. Governments deny their responsibility for atrocities, and plan them to achieve 'maximum deniability'. Truth Commissions try to overcome the suppression and denial of past horrors. Bystander nations deny their responsibility...

Macroeconomics: Institutions, Instability, and the Financial System integrates the modern monetary framework--based on the 3-equation model of the demand side, the supply side, and the policy maker--with a model of the financial system. The authors comprehensively address the limitations of the mainstream macroeconomic model exposed by the financial crisis and the Eurozone crisis. The text guides the reader through the three principal steps required to integrate the financial system within the macroeconomic model.

Every chapter emphasizes how the different actors in the economy...