Carlin and Soskice integrate the financial system with a model of the macro-economy. In doing this, they take account of the gaps in the mainstream model exposed by the financial crisis and the Eurozone crisis. This equips the reader with a realistic modelling framework to analyse the economy both in crisis times and in periods of stability.
Wendy Carlin is Professor of Economics at University College London and Research Fellow of the Centre for Economic Policy Research.
David Soskice, FBA, is School Professor of Political Science and Economics at The London School of Economics and Political Science.