This paper develops a baseline agent-based macroeconomic model and contrasts it with the common dynamic stochastic general equilibrium approach. Although simple, the model can reproduce a lot of the stylized facts of business cycles. The author argues that agent-based modeling is an adequate...

This book aims to systematically develop a general equilibrium macroeconomic model for both closed and open economies. In the seventh edition, Chapter 8 (The Standard Model of Neo-Keynesian Macroeconomics) has been revised and expanded to include a section on the neo-Keynesian IS-LM model