Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework and Its Applications - Second Edition By Jordi Gali is an English-language textbook that focuses on the analysis of monetary policy within the new Keynesian framework. This book is intended for students and professionals who are looking to deepen their understanding of economic theory and practice.
The book provides an in-depth introduction to New Keynesian theory, a foundation for modern monetary policy and the study of inflation and economic fluctuations. Jordi Gali addresses the central design issues in the conduct of monetary policy, including optimal strategies and simple policy rules. Extensive models with cost-push shocks, nominal wage stickiness, and open-economy aspects are discussed, with a focus on inflation targets. New in this edition are analyses of the zero bound on interest rates and the role of unemployment for monetary policy.
In terms of content, this work aligns with topics such as economic theory, monetary policy, and economic cycles, and is suitable for teaching and research in economics and business.