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These two volumes bring together a set of important essays that represent a "newKeynesian" perspective in economics today. This recent work shows how the Keynesian approach toeconomic fluctuations can be supported by rigorous microeconomic models of economic behavior. Theessays are grouped in seven parts that cover costly price adjustment, staggering of wages andprices, imperfect competition, coordination failures, and the markets for labor, credit, and goods.An overall introduction, brief introductions to each of the parts, and a bibliography of additionalpapers in the field round out this valuable collection.Volume 1 focuses on how friction in pricesetting at the microeconomic level leads to nominal rigidity at the macroeconomic level, and on themacroeconomic consequences of imperfect competition, including aggregate demand externalities andmultipliers. Volume 2 addresses recent research on non-Walrasian features of the labor, credit, andgoods markets.N. Gregory Mankiw is Professor of Economics at Harvard University. David Romer isAssociate Professor of Economics at the University of California at Berkeley.Contributors: George AAkerlof. Costas Azariadis. Laurence Ball. Ben S. Bernanke. Mark Bits. Olivier J. Blanchard. Alan S.Blinder. John Bryant. Andrew S. Caplin. Dennis W. Carlton. Stephen G. Cecchetti. Russell Cooper.Peter A. Diamond. Gary Fethke. Stanley Fischer. Robert E. Hall. Oliver Hart. Andrew John. NobuhiroKiyotaki. Alan B. Krueger. David M. Lilien. Ian M. McDonald. N. David Mankiw. Arthur M. Okun. AndresPolicano. David Romer. Julio J. Rotemberg. Garth Saloner. Carl Shapiro. Andrei Shleifer. Robert M.Solow. Daniel F. Spulber. Joseph E. Stiglitz. Lawrence H. Summers. John Taylor. Andrew Weiss.Michael Woodford. Janet L. Yellen.