The aim of the book is to examine the basic analytical tools of economic fluctuations and macroeconomic policy, while applying them to various specific contemporary issues such as: how do recessions and crises spread? Is unemployment the result of low aggregate demand or, conversely, excessively high labor costs? What tools do central banks and governments have to stimulate activity when private demand is weak? Can monetary policy lose its effectiveness, as seems to have happened after the Great Recession in many countries that found themselves stuck in endless "liquidity traps?"

From a pedagogical perspective, the uniqueness of the book is that it uses a unified "New Keynesian" framework that allows for the understanding of the common determinants of output, employment, inflation, and interest rates. Its orientation may also make it useful for professional economists who wish to enhance or update their knowledge of macroeconomics, either by returning to the basic principles or by examining the most recent developments.