The aim of this volume is simple: to demonstrate how quantitative general equilibrium theory can be fruitfully applied to a variety of specific macroeconomic and monetary issues. There is, by now, no shortage of high-quality advanced macroeconomic and monetary economics texts available – indeed two of the contributors to the present volume (Stephen Turnovsky and Carl Walsh) have recently written first-rate graduate texts in just these areas. However, there is often rarely space in a text book to develop models much past their basic setup, and there is similarly little scope for a detailed discussion of a model's policy implications. This volume, then, aims to bridge some of that gap.

To that end, we asked leading researchers in various areas to explain what they were up to, and where they thought the literature was headed. The result, we think, bears testimony to the richness of aggregate economic modelling that has grown out of the real business cycle (RBC) approach to growth and business cycle fluctuations. We treat this book as both a mark of the tremendous progress in this field and a staging post to even further progress subsequently.

We would like to thank colleagues who have taken the trouble to read parts of this book and provided useful comments: Anthony Garratt, Sean Holly, Campbell Leith, Paul Levine, David Miles, Ed Nelson, Sheilagh Ogilvie, Argia Sbordone, Frank Smets, Alan Sutherland, Peter Tinsley, Marcelo Veracierto, Simon Wren-Lewis, Mike Wickens. Ashwin Rattan and Chris Harrison at Cambridge University Press have provided constant support. Finally, we would like to thank Anne Mason and Gill Smith without whose efficiency this book would not have been so expertly completed.