This volume is designed as a textbook of macroeconomics suitable for second year undergraduates, or for first year undergraduates who already have some acquaintance with the subject. It emphasises the policy aspects of macroeconomics in an open economy, and refers to UK institutions and national accounts. It renders accessible the results of recent developments in macroeconomics, both in the analysis of asset accumulation effects, and in the clarification of Keynesian macroeconomics provided by the analysis of general equilibrium under rationing.