<P>Just as macroeconomic models describe the overall economy within a changing, ordynamic, framework, the models themselves change over time. In this text Stephen J. Turnovskyreviews in depth several early models as well as a representation of more recent models. Theyinclude traditional (backward-looking) models, linear rational expectations (future-looking) models,intertemporal optimization models, endogenous growth models, and continuous time stochastic models.The author uses examples from both closed and open economies. Whereas others commonly introducemodels in a closed context, tacking on a brief discussion of the model in an open economy, Turnovskyintegrates the two perspectives throughout to reflect the increasingly international outlook of thefield.This new edition has been extensively revised. It contains a new chapter on optimal monetaryand fiscal policy, and the coverage of growth theory has been expanded substantially. The range ofgrowth models considered has been extended, with particular attention devoted to transitionaldynamics and nonscale growth. The book includes cutting-edge research and unpublished data,including much of the author's own work.</P>