This book provides a concise yet rigorous discussion of the main issues in modern macroeconomics for students taking intermediate level courses in economics. In particular, it examines the controversy over the role and conduct of macroeconomic stabilization policy. While the book is written in such a way as to allow students to read individual chapters in isolation, it follows a structured direction. After providing a review of mainstream macroeconomic models and the chief areas of controversy between Keynesian, Monetarist and New Classical approaches to stabilization policy, subsequent chapters focus on selected key controversies: the balance of payments and exchange rates; inflation and unemployment; money and economic activity; fiscal policy and aggregate demand; and business cycles. This authoritative state of the art survey of modern macroeconomics has been specifically designed to meet the needs of students and teachers. It will be essential reading for intermediate level courses in macroeconomics.